The M-C-M’ cycle explains how capitalist grow and maintain their wealth by continuously reinventing money to generate more money. It starts with M (Money) – the capitalist begins with an initial investment. This money is then used to buy C (Commodities), which include raw materials, machinery, and most importantly, labor power-the workers who produce goods. Once production is complete, the capitalists sell these commodities for a higher price than the original investment, leading to M’ (More Money), or profit.
The key to this process is surplus value, which comes from labor. Workers are paid less than the value they create, meaning the capitalist keeps the extra value as profit. To maximize this, capitalists try to lower wages, increase worker productivity, and cut production costs by introducing automation or moving production to places with cheaper labor. They also reinvest profits into expanding their businesses, acquiring more means of production, or investing in financial markets. By repeating this cycle, capitalists not only maintain their wealth but continuously expand it, ensuring that they remain in control of the economy while widening the gap between themselves and the working class.