As we learned thus far, the capitalist class consists of people who own wealth, as well as the means of production in American society. An important question in understanding how this class works is to ask: how does a capitalist remain wealthy? The answer to this question depends largely on understanding the diagram M-C-M. So, let’s practice by explaining what happens in this diagram in our own words (but basing our ideas on Reading. 5.I). Respond to the following question: Explain M-C-M’ to show how capitalists maintain and increase their wealth. (hint: your answer should weave a summary that includes what you reviewed in the self-assessment exercise question 1-7).

M-C-M’ means money is used to buy things needed for production, like materials and labor. Those things are used to make products that are sold for more money. The extra money is the profit, which allows the capitalist to increase their wealth.