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)

1. In the past the commerce was based between two people that make things. One used to sell what he makes and get money and buy what the other makes or what he needs. They will get money from their labor, this is considered as the Commodity – Money-Commodity. Now the wealthy comes to play the role of intermediary between creators and buyers. They used this strategy to stay wealthy or to make more money. With their money they buy what the creators make and resell it more than what they primarily bought, and this is considered as Money-Commodity-Money + Profit. But they are able to play this role just because they have money. They are able to buy what the artisan makes for less than what their value is, and to sell them for more and this is how they become richer. They transform themselves into manufacturers and industrialists in buying the means of production with their money such as, buildings, raw materials, equipment necessary for their business. etc. Money keeps come and go and unlimited. For the capitalist system to remain the worker has to work more than what is getting paid. Therefore, they work for height hours and get paid for 4 hours. The additional four is for them to produce extra units or goods. The extra unpaid hours that the working class produce extra goods in is considered as surplus labor which will generate more profit to the boss. This extra labor surplus will then give birth to the surplus value, a big profit, more than 100% of the real value of the good in some capitalist system.