1. The formula M-C-M’ stands for buy in order to sell or resell for the capital wealth of capitalists. The First M of the formula stands for the certain amount of money invested to start. The C stands for the various commodities such as labor, equipment and raw materials. The Final M’ stands for the accumulated money also known as capital wealth. Labor power is the capacity of the mental and physical capabilities existing in a human being, which can be left fallow or brought into action and which can be used more or less intensely. An ideal start for the M factor, an ideal deal for the capitalists is to maintain and often exploit the labor power that workers have to do. Both parties make a deal offer where the capitalist buys the labor power at its money value and in exchange the capitalist agrees to pay the worker a certain wage. With this same money to start, the means of production are bought to enable the labor power to be used. This is by the means of supplies, equipment and buildings. The critical part of the process is the worker labouring for longer than it takes to create an equal value to his or her subsistence requirements. The unpaid labor is the surplus value that the capitalist makes of the supplementary day’s of work. An important factor to this is not raising the worker’s wages. An alternative method is to increase productivity of labor by greater intensity of labor that is greater effort in the product.

When operating within society, capitalists always consider actions that will maximize their financial gains, the MCM diagram gives outsiders a view of the tactics most capitalists may use.The MCM diagram stands for M (Money) -> C (Commodity) -> M'(Surplus Value) (M+m), this meaning that capitalists maximize their financial gains by using their already established wealth to buy a commodity, then selling commodity that commodity for a higher price to ensure that that they receive a financial return larger than their original investment, ultimately becoming capital.While capitalist have the intent of maximizing their wealth, commoners/workers have the goal of living day to day/surviving, their diagram being C (Commodity) -> M (Money) -> C (Commodity).They start off with an item they made, then selling that for a specific price, and using those funds in order to buy necessities for themselves or family.

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)

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.

1) The diagram M-C-M’ can be broken down as Money (M) -> Commodities (C) -> Money + surplus value (M’). This represents the position of capitalists in society and how they maintain that social class. In order to make profits (surplus value) capitalists use their capital (M) to buy the means of production (C) and labor power so that they can have workers produce goods & services which are commodities for the working class. The capitalists take these finished products and sell them for more than what they initially paid for them. Considering the transfer value of the means of production and the value of labor, the capitalist builds wealth by paying a fraction of what the labor is worth to the workers. The difference is pocketed by the capitalist allowing them to buy even more means of production through capital accumulation, this difference is the “surplus value” (M’). While the capitalist exploits the working class the workers are paid just enough to scrape by so that all their necessities to continue being a worker are met but never be paid enough to accumulate enough wealth to join the capitalist class. An important point to consider for this diagram is that capitalists do not buy their commodities for personal use, but rather to stretch the market value of it to sell it back to the working class as a necessity. Capitalism creates a system where the working class has no choice but to depend on capitalists for their livelihood. 

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.

*The formula M-C-M’ describes how capitalists preserve and increase their wealth. The capitalist begins with M which represents (Money), which he uses to purchase C which represents (Commodities), such as labor and raw materials. They then develop a product or service using these resources. The product is sold for more money than the initial investment when it is ready. The profit (M’) is the difference between the money spent and the money received from the sale of the product. The capitalist can reinvest and carry on the cycle thanks to this profit, or surplus value. They can continue to grow their wealth over time by investing, producing, and selling for more money.

The diagram M-C-M is a concept created by Karl Marx. This concept explains how capitalist increase and maintain their wealth. “M” stands for money. This is the initial amount of money that a capitalist will start with to possibly invest and/or create. “C” stands for commodity. The capitalist will use their money to invest in labor and workers to create a product that will generate money. The “M” also stands for money. This is the profit from both the product and the surplus value from the worker’s labor.

In the M-C-M’ cycle, which stands for Money-Commodity-More Money, capitalists grow their wealth by starting with money (M) to buy commodities (C), like raw materials and labor, that are needed for production. These commodities are used to create products, which are then sold for more money (M’) than was originally spent. The goal is to make a profit, which comes from selling the products at a higher price than the cost of making them. By repeating this process and reinvesting the profits, capitalists can keep increasing their wealth over time. This cycle shows how they turn money into more money by adding value during production and selling goods for a profit.

For Example, a coffee shop owner who starts with $500 (M) to buy coffee beans, milk, sugar, and pay the baristas (C). After making and selling coffee drinks, they bring in $800 (M’). The $300 difference is their profit. By using this profit to buy more supplies and maybe hire extra staff, the coffee shop can serve more customers next time, boosting their earnings. This shows how the M-C-M’ cycle works by turning initial money into more money through smart production and sales in a simple coffee business.

Explain M-C-M’ to show how capitalists maintain and increase their wealth.

M represents the initial amount of money the capitalist begin with. The capitalist then uses this money to purchase commodities which is the C. This includes physical goods and labor power. Labor power is the ability of workers to work, which the capitalist buys to produce goods or services. The capitalist’s goal is not just to buy commodities for personal use but to use them in a productive process. By investing their money in commodities, including raw materials, machinery, and workers’ labor power, capitalists are looking to create something new. In the process of production, the value of the commodities transforms into something of greater value. After the goods are produced, the capitalist sells these commodities for money again which is the last M. But the last M is greater than the original M because the value of the commodities sold has increased. This is profit or surplus value, which is the value created by a worker’s labor that is above and beyond the value of their wages. After the capitalist pays the worker a wage, they keep the surplus value for themselves once the products are sold.

Capitalists maintain and increase their wealth through the withdrawal of surplus value from workers. This process is the cycle of M.C.M. The capitalist reinvests the surplus value back into buying more commodities to produce even more goods. Capitalists accumulate wealth over time by exploiting the workers who generate surplus value, generating more wealth without having to directly increasing their own labor input.

Explain M-C-M’ to show how capitalists maintain and increase their wealth.
1)  A capitalist remains wealthy through the process of M-C-M’ or Money-commodity-M’,and the labor of the working class. A working-class individual will put in the necessary time and labor power to do their job, whether that be creating a commodity such as building computers or selling a commodity like a retail worker selling clothing at a store. The capitalist will then profit off of this by either buying the commodity at a low cost and re-selling it at a higher cost or benefiting off the surplus value created by the worker. The clothing store, for example, will outsource and have their designs made for a cheaper price while they sell them for higher using Money – to buy the Commodity – to sell and make more M’oney. Capitalists will also gain money through surplus value, which can be slightly exploitative.