Question 1

According to our previous reading 5.1, “M” equals money whereas “C” represents commodity. Therefore, the first letter that would start the diagram would be “C” using the formula C-M-C.

The working class is defined as workers or laborers that comprises those engaged in waged or salaried labor. Their only means of economic survival is to work and earn a waged. The working class includes all those who have nothing to sell except their labor, and includes both white and blue-collar workers, manual, and a diversity of mental workers. Karl Marx defined the working class as “individuals who sell their labor for wages and who do not own the means of production”. He argues that the working class was responsible for the very creation of wealth of a society, through the building of bridges; craft furniture, nursing children, and agriculture although never own land or factories.

In the book “Democracy For The Few” the writer for instance gave an illustration of the working class dynamics portraying the author (laborer) of a book who does not make profits on his book rather earns royalties for the labor of writing it.

Similarly, editors, proofreaders, printers, and salespersons a contributed labors adding to the market value of the book. Nevertheless, all profits on the book go to the capitalist, the owner of the publishing house who contributed nothing to the value of the book.

One assertion made by the writer that rings so true and in high volume was that seen on page 29, “While corporations are often called “producers”, the truth is they produce nothing”.  Organizations are indeed a tool for exploitation of labor to accumulate capital. The recognized producers are the workers/laborers who apply their strength, brain, skills and creativity of goods and services. Capitalist implies that they are “putting their money to work” not withstanding that money in itself does not work; it takes the laborer to produce so that profit maybe realized. In conclusion, the working class are never the class with the necessary financial resources or money “M” therefore the appropriate diagram that best represent this class would be on that starts with the letter “C” commodity.

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)

The first M of the diagram “M-C-M” stands for money, the idea is using money to buy commodities, here C stands for commodity or goods. However the commodity one buys not for one’s own use, but in order to sell if to make more money. The last M describes how capitalists get wealthy. Capitalists have the power to allocate resources, they rely on the allocation of resources to make more money. Also Capitalists optimize the value of commodities to increase the social value of capital operations. Because capital has value-added properties, capitalists can pursue maximization of profits. In the end, capitalists’ advantages and interests are getting bigger and bigger like “snowballs”. That’s why they are becoming more 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)