- 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)
Based on my understanding and readings in DB 5.1, M-C-M’ which represents circuit of capital, means Money-Commodity-Money. Capitalist starts with M (Money) which then being used to buy commodities (C) like for example labor power, then it leads to new commodities to a much greater value which is M’ (plus/more money) which is the final amount of money being received after selling the produced commodities. Capitalist maintain and increase their wealth by investments and also selling goods and services to maximize their gain.
