DB 5.1
- 1. **C > M > C** (Commodity > Money > Commodity) illustrates the working class, where labor functions as the commodity. I exchange a product or my services to earn money, which I subsequently use to purchase other commodities.
- 2. **M > C > M** (Money > Commodity > Money) exemplifies the capitalist approach. Here, I begin with money, use it to acquire goods or services (the commodity), and then sell that commodity at a higher price to realize a profit.
- 3. The “M” represents MONEY, indicating the earnings for both social classes. The primary distinction lies in how they obtain it, depending on their respective methods.
- 4. How is money transformed into capital? When I use my money (M) to purchase a commodity, whether it be a service or a product, I carry out the necessary labor. Afterward, I sell the product at a higher price, generating a profit. With this profit, I can invest in various opportunities, thereby creating capital. As previously mentioned, owners and capitalists acquire their money through investments, while workers earn their income through wages.
DB 5.2
- Explain M-C-M’ to show how capitalists maintain and increase their wealth. Owners have money, which they have accumulated through investments made from the profits generated by low-cost labor. They hire workers who, in return, provide products or services. The owners then reinvest the profits they earn from these products, allowing them to accumulate even more wealth.
