The M-C-M’ diagram explains how capitalists maintain and increase their wealth by describing the flow of capital in a continuous cycle. Here’s a breakdown of the process:

• M (Money): The capitalist starts with money (M), which they use to invest in commodities, including raw materials, machinery, and labor.
• C (Commodity): The money is used to purchase commodities, which are then transformed through production. This stage involves the use of labor to create a new product that has greater value than the sum of its inputs.
• M’ (Money Prime): The newly created commodities are then sold for more money than the initial investment (M’). The increase in money, represented as M’ (M plus surplus value), comes from the added value created during production, primarily through the exploitation of labor.

In essence, the M-C-M’ cycle shows that the capitalist does not simply buy to consume but rather buys to sell at a profit. By continuously reinvesting and repeating this cycle, capitalists can accumulate more wealth. The key to this process is the surplus value. The difference between what workers are paid and the value of what they produce, which is then accumulated for the capitalists. This cycle allows capitalists to maintain their position in the wealth hierarchy and continuously expand their capital​.