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-assesment exercise question 1-7)
Capitalists remains wealthy by counting to make profits and investing in stocks and bonds. With M-C-M meaning for Money Commodity Money, capitalists use their very own money to buy resources such as machines, fuel to be able to provide their employees to labor. Capitalists continue to invest into business and profits that they know they would benefit from and many capitalists already are wealthy from being born into the family wealth.