The ability of attaining a commodity with finances which are already owned and is subsequently sold to create more of a financial gain is known as the MCM. The amount of money gathered over the amount of money kept is considered a profit. M’ translates to the method through which capitalists increase their profit, which is also known as surplus value. From this, Capitalists invest money into commodities that are subsequently sold at competitive prices on the market, which allows them to gain more profit and continue to be live wealthily.

The practice of obtaining a commodity with money that already owns it and then selling it to generate more money is known as the M-C-M. The amount of money acquired over the amount of money held is described as profit. M’ denotes the method through which capitalists increase their profit, also known as surplus value. As a result, capitalists invest their money in commodities that are then sold at higher prices on the market, allowing them to increase their profit and remain wealthy.

1. 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)

Capitalists use their MCM formula to create, maintain, and increase their wealth. MCM is the formula for saying you use money to buy or make commodities and with these commodities you can earn more money. The more money you put in, the more money you should get out of it. With the capitalist mentality, you are able to constantly put more money into your business and further create more money as profit. Surplus value is the result from the profits contributed from laborers.

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)

Ans: M-C-M is the process whereby there is a flow of transactions committed by using money. It starts with money and ends with money––thus, money is used to purchase goods and services or commodities that will be then sold for profits or more money. The meaning of this acronym is Money-Commodity-Money, where the last M (money) depicts how the wealthy or capitalist make profits. They sell the commodity they invested in to make more money. We must be mindful that the principal aim of the capitalist class is profiting so they do not invest in anything that won’t bring them profits. Therefore, any commodity that a capitalist cannot resell to make more money is considered not valuable to the capitalist for their primary goal is profits.

The formula M-C-M’ explain how capitalists maintain and increase their wealth. M is currency, C is a commodity, M’ represents surplus value, M’ is greater than M.

To maintain their wealth and increase it, Capitalists realized that not only do they have to buy commodities to resell, they also have to invest their capitals in buying building, machinery, equipment, raw materials and labor force to produce more commodities to earn more money.

By now the idea of capitalist is very clear, those with wealth hire others to continue to make them more money or M’, surplus. Money is used to buy Commodity or labor from employees, the exchange of labor for low wages, which then turns into M’ as the surplus being made by the workers. The M’ represents the profits being made that allow for the owners wealth to grow, keeping it in a steady growth. As long as the employees continue to work for shorter hours to meet the company requirements then the rest of the time spent working will continue to make the company a surplus. This is how the capital can keep growing.

1-M-C-M stands for M(money), C(commodity), and M(money) . The working class provide goods that can be bought or exchanged for prizes such as  money. The working class uses that reward  to support their family needs.  The capitalist remains wealthy by decreasing workers wages and sells the commodity for a higher price as a result of having additional wealth.

Explain M-C-M’ to show how capitalists maintain and increase their wealth.

The M-C-M’ is the act of buying with the Money that already owned the Commodity and selling it to gain more M’oney. The money that has been gained (profit) more than the money owned. This process adopted by capitalist to increase their profit or what it calls the surplus value which is represented by M’. So, capitalist invest their money capital to buying products and those products will be sold in the market with higher prices which permit them to increases their profit and thus sustain wealthy.      

1. 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 these class works are 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 is for money, C is for commodity, second M is for surplus value. The capitalists maintain and increase their wealth by inheriting their money from family, then hire people to work, extort their labor power to create more products in exchange for money, in order to get more surplus value, like a cycle, so Americans who are rich will keep rich and gain more wealth.