Respond to the following question: Explain M-C-M’ to show how capitalists maintain and increase their wealth.

A capitalist remains wealthy by using the formula M-C-M’. The wealthy person already has money (M), that they possess from previous wealth or earnings which they use to purchase commodities (C) that are necessary for production, such as buildings, tools, raw materials, equipment, and labor power. Labor power is the most crucial commodity because it is what creates new value. Workers sell their labor in exchange for wages, but their work generates more value than what they are paid. After purchasing the means of production and labor, the capitalist then produces a product and sells or resells it for a value greater than the cost of production. This sale returns more money to the capitalist than they initially invested, and this increase in money is (M’)—the surplus value.

Most of the capitalist’s profit comes from surplus value, which is the unpaid labor from workers. This surplus labor is the additional time workers work after they have already earned their wages during part of their shift. Therefore, capitalists maintain and increase their wealth by exploiting the working class. As society progresses, the constant capital (such as raw materials and equipment) remains largely the same, but it is the variable capital—the wages paid to workers—that ultimately increases the capitalist’s wealth and surplus.

1. The way I understand means of production are the instruments it takes to produce something which includes ones skills, talents, and or what one owns. For example I use my building zoning code knowledge, typing skills, a computer and copy machine to prepare specific forms and applications to process my work permits. Labor can increase the value of what you have as labor is measured in the time it takes to complete producing the product under normal circumstances. Example How much time I actually apply to do the task (under normal conditions), the more time spent the more it is worth. Time is literally money.
2. Another important concept in understanding social class is value. Based on the ideas presented in Video 5.1, what is value?  What give “value” to value, what makes something valuable? Labor and value are intrinsically connected. The amount of labor time spent on producing a good or service determines its value. The more time and effort involved in production, the more valuable the product becomes. For instance, hand-made goods take more time to create than machine-made ones, so they are often priced higher because more labor is involved in making them.
3. How are labor and value related? What’s the relationship/connection between the two? Labor and value are related due to the amount of time and effort it takes to create goods or service. The more time it takes to make something the higher its value. Like when something is handmaid rather than machine made it takes more time and can cost more.
4. How do you understand the difference between labor and labor power? Hint: this is a key difference, give it your best shot based on what the video says about it, and your own ideas. We’ll clarify and develop it in our discussions, and in my video comments. Labor is the actual work or effort put into creating something, whereas labor power is the potential or capacity to perform labor. Labor power is what individuals sell to employers in exchange for wages. It is sustained by the basic needs like food, clothing, and shelter, and it is the source of the actual labor effort. In essence, labor power is the “capacity to work” that someone offers, while labor is the actual performance of that work.
5. Surplus value refers to the additional value generated by workers beyond the cost of their labor. In other words, after workers are paid their wages, the value they create in excess of their wage is retained by the employer as profit. It’s crucial for understanding capitalism because it reveals how workers are often paid less than the value they create, which leads to inequality and class conflict. For example, if an employer pays workers $10 for an hour of labor but charges customers $30 for the product, the $20 difference is surplus value—profit that goes to the employer rather than the workers.

1. What is the distinction that Reading 4.3 makes between owners and employees? Give an example of each.

The distinction between owners and employees is that the owning class (or capital class) lives off the work produced by their employees. They don’t depend on a salary; instead, they earn profits from their assets, which include investments like real estate, stocks and bonds, rare minerals, and land. In contrast, employees (or the labor class) need to work for a living and rely on a salary.

2. How do you understand the quote by Adam Smith on page 28? What is it saying about labor?

I interpret Adam Smith’s quote, “labor… is alone the ultimate and real standard by which the value of commodities can at all times and places be estimated and compared. It is their real price; money is their nominal price,” to align with Abraham Lincoln’s idea that “Labor is prior to, and independent of, capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration.” Essentially, it means that labor—the work done by people—has true value, whereas money is just a symbolic measure. The working class is more valuable because they do the actual work.

3. What are your thoughts on the main argument of Reading 4.4 that class is NOT an identity?

My view is that liberals miss an important point: class is not just a separate identity, but a relationship of interdependence. Unlike the independence that characterizes other aspects of identity (like race or gender), the classes rely on each other. Capitalists depend on workers for production, and workers depend on capitalists for wages. Liberals’ way of thinking about class as a ladder and viewing it as more quantitative than qualitative complicates their efforts to address oppression, especially when fighting for racial and gender equality. This approach makes it harder to fully tackle the underlying issues of exploitation.

4. How do you understand the argument Reading 4.4 makes when stating that “class structures are built around a close form of dependency”? What is this close form of dependency, and can you think of an example?

The close form of dependency means that both the capitalist and the worker rely on each other. Capitalists depend on workers for production to generate profits and satisfy investors. On the other hand, workers depend on capitalists for a paycheck to support their families. An example of this is a labor strike: if workers stop working, there are no products for the capitalists to sell. But without the capitalists, workers have no jobs, no salary, and no way to feed their families. This creates a mutual dependency that is central to class structures.

1.What is a Repressive State Apparatus? Why does Althusser call it “repressive”? Can we explain his choice of words here. Give an example.  

Repressive state apparatus are a collection of state controlled institutions that use force or threats of force to maintain order and enforce the rule of law, control us through the threat of violence. For example courts, prisons, police precincts, cops judges are all examples.

2. Let’s do the same for the Ideological State Apparatuses. What are they, how do they seem to work?

Ideological State apparatus are institutions that prevent change to the status quo by indoctrinating us by priming and distraction. For example Schools, politics, and mass media. Their purpose to keep us in line with giving us the illusion we have a choice in order to settle our revolutionary impulses.

3. Important: this question will appear on our exam: How are the Repressive and Ideological State Apparatuses different from each other? What is the difference between the two?

The difference in the two are the techniques they use to control the masses. While repressive state apparatus is ruling by threat of consequence like use of physical force, incarceration and obvious to its function and purpose, Ideological state apparatus is more covert, it’s like subliminal mind control that we aren’t consciously aware is even happening.  

4. Post an example of ideology. This could be a piece of writing, an image, video, pdf document, visual art, or music, clip from a movie. Next to your example, specify if this is an example of repressive or ideological apparatuses at work.

Ideological apparatus