Times have changed. Before capitalism emerged, peasants and artisans engaged in small-scale commodity production, following a straightforward exchange pattern: Commodity (C) – Money (M) – Commodity (C). In this system, the value of the commodity at the end of the exchange was equal to its initial value. The primary focus was on fulfilling personal needs—whether food or clothing—without the concept of surplus value being involved.

With the rise of capitalism, however, a new figure appeared: the capitalist. Unlike peasants and artisans, capitalists held money, or capital, and engaged in exchanges not for personal use but for profit. This shift transformed the exchange dynamic to Money (M) – Commodity (C) – Money (M’), where M’ represents an amount greater than M, signifying the generation of surplus value or profit. The capitalist aims to buy commodities at a lower price, realizing surplus value by selling them at a higher price. Artisans often preferred to sell to traders, saving time and effort in seeking individual customers.

The continuous reinvestment of money into circulation is what keeps capitalists wealthy. They utilize a portion of their surplus value for further investments, adhering to the principle of “we need money to make money.” The formula M-C-M’ encapsulates the general process of capital: the money invested in commodities returns as a greater sum when sold.

Labor power, encompassing both mental and physical capabilities, becomes a crucial element in this system. When workers sell their labor power for wages or salaries, capitalists use the initial M to purchase this labor and the means of production necessary for operations. The resulting goods (C) are produced as a consequence of this labor, leading to M’—the final profit that remains in the hands of the capitalist.

Capitalism inherently emphasizes the exploitation of workers, often lacking compassion. If capitalists were to act reasonably toward their workers, they might reduce their surplus value, jeopardizing their profit margins. Additionally, capitalists must cover costs associated with means of production, such as materials, machinery, and rent.

In conclusion, capitalists maintain and expand their wealth through the systematic exploitation of labor, constantly seeking to increase their relative surplus value. This relentless pursuit underscores the nature of capitalism, where the primary goal is to continually engage in buying and selling to accumulate wealth.

1. Video 5.1 highlights fundamental issues such as productions methods and labor. The components of production includes land, tools, factories and investment capital utilized to create fortune. For example a shoe factory, the means of production would include the factory building, the sewing machines, and the raw materials like leather and rubber used to create the shoes. Labor refers to the effort that people put into with their mental and physical to product the goods and service. The means of production and labor are critical components in any economic system, influencing how products are created and who controls the process.
2. Marx emphasize that value can be defined as a significance or worth that society gives to products and services based on many different kinds of criteria. Value is a social construct that varies across circumstances and cultures. Something has a high value equals to the more labor.
3. Based on Marx theory labor and value are linked with labor serving an important role in producing value while also being affected by economic conditions and society perspectives. Understanding this connection helps explain how economic systems work and consequences for social class and inequality.
4. The difference between labor and labor power is an important concept in labor economics and Marxist theory. Labor refers to the physical work that was completed while labor power is the ability or power to do the job at hand. Realizing this difference is essential to understanding labor markets, wage changes, and the larger consequences for economic systems and social class structures.
5. Surplus value is the excess of value produced by the labor of workers over the wages they are paid. Surplus value is an important a sense in understanding economic mistreatment, social class dynamics, and income inequality. It emphasizes the underlying antagonism between labour and capital, which is critical for understanding the structures and interactions that define society

1. The distinction between owners and employees is the sources of income between both parties. The owners generate their income through their investments and ownership of the assets which they make profit. With employees they earn their profit by wages in exchange for labor. The reading show how owners benefit from the economic value produced by employees, highlighting the disparity in income sources and wealth accumulation between these two groups.In “Inequality and New York’s Subway,” an example of owners would be the shareholders or investors who profit from the ownership of the subway system or related infrastructure. These owners make money through their investments, receiving returns in the form of dividends or profits from the operation of the subway system, rather than through direct labor. An example for employees an example would be subway workers. The subway workers employees tend to make their salaries based on their labor which is providing services to operate and maintain the subway system.
2. Adam Smith quotes,“ The division of labor occasions a proportionate increase of the productive powers of labor,”emphasizes the importance of labor in generating wealth and value. The quotes mainly emphasizes smith’s point of view of labor which is creating values and wealth.This emphasizes the notion that labor is the primary factor in creating value, demonstrating its superiority over wealth. Smith essentially contends that labor is the fundamental component that determines the genuine value of commodities.
3. The main argument in the reading is that class should not be considered as an identity, it should be seen as a position in the economic system. The theory emphasizes that class is defined by one’s place in the economic structure how people interact with production, money, and labor rather than personal traits or self-perception. This turns the attention away from individual identity and self-concept and onto structural features of economic systems.
4. The argument “class structures are built around a close form of dependency” it suggest that class relations are determined by complex and interrelated economic and social interactions. Which is suggesting the common difference between the different classes. For example, the public transit system such as New York’s subway system. Subway workers, including operators, maintenance crews, and ticket agents, rely on the transit authority to provide wages and working conditions. The transit authority rely on their workers to continue a smooth working system allowing millions of people to commute to work or school with no issue which is contributing to the economy. This creates mutual dependence because without the workers, the subway system would fail, affecting the entire city’s economy. The workers are depending on the transit systems salary to make a living and to provide for themself. However, the relationship is unequal because the transportation system’s owners or administrators have a greater effect over working conditions and income, while workers have little control over how their labor is utilized or returned.

1. In the readings 4.1 and 4.2 I have noticed some similarities between the way social class is discussed in the readings. For example, the main way they discussed social class was by explaining the wealth of each social class and what classifies them to be in their social class. The main point in the readings were discussing the social class income. A difference on the way both readings discuss social class is by 4.1 discussing how education level plays another role on social class.
2. The social class that lives around my neighborhood is mostly middle class. Honestly I am surprised because walking around my neighborhood makes it seem like it is lower class based on the surrounding. The data could possibly accurate in my area but inaccurate in another area. I don’t think that the data in all is accurate.
3. A general social class pattern that I have noticed in the reading 4.2 is that even the other neighborhoods around me have similar social class as mine and it is all measured by income on families.

1. (a) In my opinion, ideology is a set of beliefs and values that guides individuals make their decisions. It forms basis opinions on political, economic and the social system that influence attitudes and behaviors.
(b) One example of ideology in American politics is the Tax Cuts and Jobs Act of 2017. The Tax Cuts and Jobs Act of 2017 is a prime example of conservative ideology because it totally revamped the American tax code with the goal of boosting company competitiveness and economic growth. The Act, which dramatically lowers the corporation tax rate from 35% to 21%, is a reflection of the conservative view that tax cuts may encourage investment and employment growth. The idea that reduced taxes will increase consumer spending and economic activity is further embodied by the reduction of individual income tax rates and the increase of the standard deduction. Furthermore, the Act’s provision allowing corporate investments to be immediately expensed is consistent with the conservative focus on promoting economic growth through deregulation and less government involvement.
(c) Ideology, in my opinion, is a comprehensive framework of beliefs and values that help individuals or groups comprehend and interact with the world. It provides a thorough understanding on which people will understand social, political, and economic issues, influencing their attitudes and behaviors. Ideologies offer a solid understanding of complex issues, it is presenting justifications that aligns with their core principles. For example, political ideology such as conservatism presents different points of views on the government roles and personal freedoms.

2. In U.S. politics, conservative and liberal ideologies often represent opposing perspectives on the role of government, individual rights, and social issues, reflecting broader debates about how society should be organized and governed.In general, conservatives support free markets, less government, and individual accountability. They believe that the government should put more of its energy into encouraging individual initiative and self-reliance rather than controlling enterprises and social initiatives. Conservatives also support conventional values and are hesitant to significantly alter societal .They frequently give national security and upkeep of current systems top priority. In the US, liberal ideology is a political and social theory that supports government action and intervention in resolving social and economic problems, advancing individual liberties, and guaranteeing greater fairness in society. They believe that in order to guarantee that everyone has equal opportunity, the government should offer resources like health care, schooling, and to ensure that everyone receive the same equal rights and opportunity. The size of the federal government is in essence, the main point of contention between conservatives and liberals; the former desire less involvement and the latter more assistance with social issues and equality.
3. Althusser’s definition of ideology is a set of concepts and convictions that, frequently unconsciously, influence a person’s self-perception and worldview. According to Althusser, ideology is a set of concepts and viewpoints that, frequently unconsciously, influence how individuals see themselves and their role in the world. Ideology, in Althusser’s view, reinforces particular views by forging a sense of identity and belonging through organizations like the media, churches, and educational institutions.