M -C – M means a capitalists starts with money that being the M. Uses that money to buy commodities that being C which can be materials, equipment, and labor power. The last M would stand for more money after they sell the product. The extra money that comes is called the surplus value created by workers. It allows capitalists to make profit, reinvest their money, and then continue to increase their wealth.
2 thoughts on “Discussion 5.2 – Kailynn Cambi”
Leave a Reply
You must be logged in to post a comment.
Hi Kailynn! Great post. Building on your explanation of M-C-M’, human labor is what brings that middle stage (C) to life. Tools and machinery sit idle until a worker uses them, so it’s really that added human effort that transforms raw inputs into actual products and generates the surplus value for the capitalist!
Hi Kailynn, I think this was an easy way to summarize M-C-M’ and made it easy to understand. I also like that you mentioned surplus value because I think that is an important part of understanding what the M’ actually represents. Something I would add is that the surplus value doesn’t come from selling the product for more money, but from the additional value workers create through their labor beyond the value of their labor power. That was something that helped me understand this concept better because the worker can be paid their agreed wage for the day while still creating more value for the capitalist than what they were paid. That additional value is what allows the capitalist to make a profit and continue the MCM cycle.