M-C-M

The M-C-M’ diagram is a fundamental concept in understanding how capitalists maintain and increase their wealth. In this formula:

• M stands for money.
• C stands for commodities (goods, labor, or materials).
• M’ represents the increased amount of money after the sale of commodities, where the goal is to end up with more money than you started with.

Here’s how it works:

A capitalist begins with M (money) and uses it to purchase C (commodities), such as raw materials, machinery, and labor. These commodities are used in the production process to create goods or services. Once the commodities have been produced, the capitalist sells them for a higher amount of M’ (money), generating profit. The difference between the initial M and the final M’ is the surplus value, which results from paying workers less than the value of what they produce.

The key idea here is that the capitalist’s wealth grows by continually reinvesting M into C (commodities) and extracting surplus value from labor. This cycle of investment and production increases their wealth as long as they continue to generate M’, or more money than they originally invested.

In summary, the capitalist maintains and increases wealth by reinvesting capital, paying workers less than the value they produce, and extracting surplus value through the sale of commodities for a profit, which leads to an ever-expanding accumulation of wealth.

Capital & Labour Power

1. Two key concepts in this video are the means of production and labor. In your comment, explain how you understand the means of production and labor. Give an example of each.
   The means of production refer to the physical resources and tools needed to produce goods, like factories, machines, or land. Labor refers to the human effort and work involved in creating products. For example, in a car manufacturing plant, the factory and assembly line machinery are the means of production, while the workers assembling the cars represent labor.
2. Another important concept in understanding social class is value. Based on the ideas presented in Video 5.1, what is value? What give “value” to value, what makes something valuable?
   In the context of social class and economic production, value refers to the worth of a product or service, often determined by the labor put into its production. According to the ideas presented in Video 5.1, value is created through the combination of labor and the means of production. What gives “value” to something is largely the amount of labor required to produce it, as well as the utility or desirability of the product to others in society. For example, a handcrafted piece of furniture may be considered valuable because it took significant time, skill, and effort to make, and it serves a functional purpose. Additionally, scarcity or the demand for an item can increase its perceived value. Thus, value is shaped by both the labor involved and the social or economic demand for the product.
3. How are labor and value related? What’s the relationship/connection between the two?
   Labor and value are closely related because labor is a key factor in creating the value of a product or service. In many economic theories, especially in Marxist thought, the value of a good is directly tied to the amount of labor required to produce it. The more labor-intensive or skillful the production process, the greater the value of the product.
   The relationship between labor and value can be understood through the labor theory of value, which suggests that the value of a commodity is determined by the amount of socially necessary labor time invested in its production. In other words, products that take more effort, time, or expertise to produce are often seen as more valuable. However, value is also influenced by factors like demand, scarcity, and the market’s willingness to pay for a product, meaning that labor is one important component but not the sole determinant of value.
4. How do you understand the difference between labor and labor power? Hint: this is a key difference, give it your best shot based on what the video says about it, and your own ideas. We’ll clarify and develop it in our discussions, and in my video comments.
   The difference between labor and labor power lies in the distinction between the actual work done and the potential to work. Labor refers to the physical and mental effort that workers put into producing goods or services. It’s the act of working itself—like building a house, writing a book, or assembling a product.
   Labor power, on the other hand, refers to the capacity or ability of a worker to perform labor. It’s the worker’s potential to work, which they sell to an employer in exchange for wages. The employer buys the worker’s labor power (the ability to work) and then puts it to use to generate products and, ultimately, profit.
   The key difference is that labor is the actual act of working, while labor power is the potential or capability to do that work, which can be bought and sold in a capitalist economy.
5. Surplus Value: what is it? Why is it important to know about, in our study of social classes? Think about an example of surplus value?
   Surplus value refers to the difference between the value produced by a worker’s labor and the wages the worker is paid. In other words, it’s the extra value or profit that the employer gains from the worker’s labor beyond what the worker is compensated for. This concept is central to Marxist economic theory, which argues that surplus value is the source of profit in capitalist systems and is generated by exploiting workers—paying them less than the value they create.
   Understanding surplus value is crucial in studying social classes because it highlights the economic exploitation that occurs between different classes, particularly between the working class (proletariat) and the capitalist class (bourgeoisie). The capitalist class profits from surplus value, while the working class often receives only a fraction of the value they produce.
   An example of surplus value could be a factory worker who is paid $10 an hour to make shoes, but each pair of shoes they produce is sold for significantly more than what it costs to pay the worker and cover material expenses. The difference, or surplus value, goes to the employer, contributing to their profit, while the worker earns a fixed wage. This system helps maintain class divisions and economic inequality.

1. What is the distinction that Reading 4.3 makes between owners and employees? Give an example of each.
   Reading 4.3 distinguishes between owners and employees based on their relationship to the means of production. Owners, or capitalists, control the resources and businesses that generate profit, while employees, or workers, sell their labor to survive. For example, the owner of a factory profits from the production of goods, while the factory worker earns wages by performing tasks to create those goods. The two groups have different interests, with owners focused on maximizing profit and employees seeking better wages and conditions.
2. How do you understand the quote by Adam Smith on pg. 28? What is it saying about labor?
   Adam Smith’s quote “labor … is alone the ultimate and real standard by which the value of all commodities can at all times and places be estimated and compared. It is their real price; money is their nominal price only.” highlights that labor is the fundamental source of value in society. It suggests that all wealth is derived from the effort of labor, and the goods we buy or consume are essentially the result of human work. Smith emphasizes the idea that labor is the real price of everything—meaning that it’s not just about the monetary cost, but the amount of human effort and time invested in producing a good or service that gives it value.
3. What are your thoughts on the main argument of Reading 4.4 that class is NOT an identity?
   In Reading 4.4, the main idea is that class is not just a label or a personal trait like race or gender. Instead, class is about one’s role in the economy, based on whether they own production means (like factories) or work for someone who does. This position in the economy influences their opportunities and power, making class more about economic roles and less about personal identity.
4. How do you understand the argument Reading 4.4. makes when stating that “class structures are built around a close form of dependency”? What is this close form of dependency, and can you think of an example?
   In Reading 4.4, the argument about “class structures being built around a close form of dependency” refers to how workers depend on capitalists for jobs, while capitalists depend on workers to generate profits. This relationship is essential in capitalist society, as both groups rely on each other, but the power dynamics are unequal. For example, factory workers rely on their employer for wages to survive, while the employer needs the workers to produce goods that bring in profits. This creates a constant push and pull between the two groups.

Nan Wut Mone

Social Classes

1. Do you notice any similarities in the way social class is discussed in readings 4.1 and 4.2? Do you notice any differences in the way these two readings DIFFERENTIATE between social classes?
   In both readings, social class is discussed as a multifaceted concept influenced by income, education, and geography, emphasizing subjective social class (how people perceive themselves). Both highlight the complexity of class identification, beyond just financial measures, including cultural and demographic factors.
   The similarities include a focus on how income and education shape social class perceptions and the fluidity between categories like middle and working class. However, differences lie in the visual representation (NYC subway map) in reading 4.2, which uses geographic income data to distinguish class, while reading 4.1 provides a more statistical and analytical approach to the factors influencing class identification.
2. Pick the station closest to where you live. Using the concepts from Reading 4.1, what social class tends to live in your neighborhood? Are you surprised (or not) by the answer? Do you feel it is an accurate representation of the people living in your neighborhood?
   Using concepts from Reading 4.1, my neighborhood around Kings Highway (N & F) seems to be made up mostly of working-class residents, with some who might identify as upper class. This fits the reading’s emphasis on income and occupation as central to determining social class. I’ve noticed that while most people around here work regular jobs and identify with the working class, there are a few wealthier families. Overall, this mix of classes feels aligned with how income and education shape people’s perception of their social class.
3. Based on Reading 4.2, do you notice a general pattern about social classes in NYC? Based on Reading 4.2, a clear pattern emerges about social classes in NYC: wealthier areas are concentrated near subway stations in central and upscale neighborhoods, while working-class and lower-income communities tend to live in neighborhoods further from the city’s core. This creates a distinct geographic divide, where subway stops become markers of social and economic status. The map highlights how tightly social class is linked to geography, reflecting broader economic disparities across different parts of the city.

RSA & ISA

Nan Wut Mone

1. A Repressive State Apparatus (RSA), according to Althusser, refers to the institutions and structures that enforce the power of the state through direct control, often using force or the threat of force. These include institutions like the police, military, prisons, and the legal system, which maintain order by repressing those who challenge the established system. Althusser calls it “repressive” because these apparatuses primarily use coercion, or the threat of punishment, to ensure obedience and compliance with the laws and rules of the state. The word “repressive” highlights the fact that these institutions rely on force to control the population and keep people in line with the existing power structures. For example, if someone breaks the law, the police or the legal system will intervene to punish or detain the individual, making sure that the societal order is preserved. An example of an RSA is the police force. When people protest against government policies, the police might step in to disperse the crowd or arrest participants if the protest is deemed unlawful. The role of the police here is to repress behaviour that challenges the state’s authority, maintaining control through the possibility or use of force. This enforcement of law and order is how the state exercises its power to maintain the existing social system.

2. Ideological State Apparatuses (ISAs), according to Althusser, are institutions that help keep the state in power by shaping people’s beliefs, values, and attitudes without using force. Examples of ISAs include schools, churches, the family, media, and cultural organisations. Unlike Repressive State Apparatuses (RSAs), which control people through force, ISAs influence people by subtly shaping how they think and view the world. ISAs promote certain ideas and values that match the interests of those in power. These ideas are spread through daily practices, social activities, and institutions, making people accept them as “normal” without questioning them. Over time, people adopt these ideas, which helps maintain the existing social order. For instance, schools are a major ISA. Besides teaching subjects, schools teach values like discipline, respect for authority, and hard work. These lessons help students fit into the social and economic system, making them more likely to accept their place in society without needing direct control or force. In short, ISAs work by influencing people’s minds and behaviors in a way that feels natural and voluntary, helping to maintain the existing power structures.

3. The main difference between Repressive State Apparatuses (RSAs) and Ideological State Apparatuses (ISAs) is how they keep control in society. RSAs use force or the threat of force to maintain control. Examples are the police, military, courts, and prisons. These institutions make sure people follow the rules by punishing those who don’t. RSAs focus on directly enforcing the state’s power through physical means. ISAs, on the other hand, control people by shaping their beliefs, values, and attitudes. Examples include schools, churches, media, and family. ISAs work in a more subtle way, making people accept certain ideas and social norms as natural. They don’t use force but instead influence how people think, which helps keep society in line without obvious pressure. In short, RSAs use force, while ISAs use ideology to shape how people think and behave, making them follow the rules more willingly.

4. An example of ideology at work is the Pledge of Allegiance recited in U.S. schools. Many students say the pledge every day, declaring loyalty to the country and its values. This is an example of an Ideological State Apparatus (ISA) because it shapes how students think about patriotism, national identity, and respect for the government. It doesn’t use force, but by repeating the pledge, students start to believe these values are normal and part of who they are. This is a clear example of ideology being reinforced through a cultural practice.

Nan Wut Mone

What is Ideology?

1. (a) In my view, ideology is a set of beliefs and values that guide individuals and political groups in understanding government, society, and the role of institutions. Political ideologies shape perspectives on issues such as the size and role of government, individual freedoms, economic policies, and social values. In the U.S., the two dominant political ideologies are liberalism, which tends to support government intervention in social and economic matters, and conservatism, which typically advocates for limited government, free markets, and traditional social values. Ideology influences political behaviour, party affiliation, and policy preferences in American politics.

(b) An example of ideology in American politics can be seen in the debate over healthcare. Those with a liberal ideology often support government-provided or regulated healthcare, like the Affordable Care Act (Obamacare), believing that access to healthcare is a right and that the government should ensure that everyone, regardless of income, has access to medical services. They argue that government intervention is necessary to address inequalities and protect public welfare. On the other hand, individuals with a conservative ideology typically favour a free-market approach to healthcare. They argue that government involvement leads to inefficiency and higher costs, and believe that private companies and competition should drive the healthcare system. Conservatives often advocate for policies that reduce government regulation and give individuals more control over their healthcare choices.

(c) Ideology is a way people see and understand the world, shaping how they think about government, society, and the economy. It provides a set of ideas and beliefs that influence how people feel about important issues like justice, freedom, equality, and power. Ideologies are not just abstract ideas but personal beliefs that guide how people vote, participate in politics, and interact with others. For example, someone who strongly believes in individualism might focus on personal responsibility and prefer less government involvement, while someone who values community well-being might support a larger government role to help people. Ideologies can change over time due to shifts in culture, economics, or history. They also exist on a spectrum, meaning people might not fit perfectly into one ideological category and can hold a mix of beliefs. For instance, a person may support conservative economic policies but have liberal views on social issues. Understanding ideology helps explain why people have different political opinions and actions, as it reflects their values and what they believe is best for society.

2. The main difference between conservatives and liberals is how they view the role of government, personal freedom, and social issues. Conservatives generally believe in a smaller government, free markets, and personal responsibility. They think the government should do less in regulating businesses and running social programs, focusing instead on individual effort and self-reliance. Conservatives also tend to support traditional values and are cautious about making big changes to social norms. They often prioritise things like national security and maintaining existing systems. Liberals, on the other hand, believe the government should play a bigger role in solving social and economic problems. They think the government should provide services like healthcare, education, and welfare to ensure everyone has equal opportunities. Liberals usually support policies that promote individual rights, diversity, and inclusion, often pushing for changes in areas like LGBTQ+ rights, immigration, and environmental protection. A good example of this difference is the debate on taxes and social programs. Conservatives typically want lower taxes and less government spending, believing people and businesses should have more control over their money, which they think will help the economy grow. Liberals, however, often support higher taxes on the wealthy to fund social programs like Medicare and unemployment benefits to help those in need. This shows how the two sides differ in their views on how much the government should get involved in people’s lives and the economy. In short, the big difference between conservatives and liberals is about the size of the government, with conservatives wanting less intervention and liberals wanting more to help with social issues and equality.

3. Althusser’s definition of ideology can be understood as a system of ideas and beliefs that shape how people view themselves and their place in the world, often without them realising it. According to Althusser, ideology works by creating a sense of identity and belonging, and it operates through institutions like schools, churches, and the media to reinforce certain beliefs. Importantly, he argues that ideology doesn’t just exist in people’s minds but is deeply embedded in practices and rituals that people participate in, which then helps maintain the existing power structures in society. An example of this would be the way education works. Schools teach students not only academic knowledge but also certain values, like respect for authority, the importance of hard work, and following rules. This helps students develop an identity that fits within society’s expectations, making them more likely to accept and function within the current social system without questioning it. Thus, education serves as a tool through which ideology is reinforced, keeping people aligned with the existing power structure.