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 5.1). 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 stands for money commodities and more Money: money is the bases of everything in a capitalist economy money is best seen as capital for capital or better way to say it, an investment. Spending money to make money usually seen in the likes of merchants or street vendors. They buy a product and sell it at a higher price and make a profit. This is why merchants travel far and wide. Merchants buy a product in a place where that product is plentiful (therefore the price is lower) and then sell it at a place where that item is less common (at a higher price).

Money for commodities on the other hand is money used to buy materials and equipment to make products as well as labor (employees) to make that product.

Then that product gets sold and make even more profit because of mass production.