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)

M-C-M is money , commodity and then money again. The first M is not the same as the second M. The first M is the money being put into it by whether the companies or the owners while on the other hand the last M is the profit they are receiving. Which will be the surplus value. However, if it doesn’t go right for them, the capitalist will always put their money back into the process and start over with the operations as fast as possible. The capitals starting with money to acquire more money is what helps them increase their capital. The operation is limited due to the goods. But with the capitalist higher power they are able to devote their capital to factories , machinery, raw materials and ect. Labor power and value brings up the surplus value. The more value that is put into making or constructing a project or product. Bring this value to a higher price. If the value is most valuable and the work ethic is shown in the product, the more money the customers would want to pay. With them consuming more money the better the surplus value is on the capitalist side.

One thought on “db 5.2”

  1. Hello Ashanti,
    It seems that the M-C-M cycle is endless for the capitalist. Every investment made is continually producing M to be re-invested or invested in new products/services that will bare even more profit. Unfortunately, those profits will only be seen by the owners and the workers will continue to toil for wages that don’t reflect, in actuality, the labor they put into product production.

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