Posted on by Chelsea Dobson Moronta

Discussion Board 5.2

The term M-C-M is used to explain how the capitalists build their wealth and keep it steady. M(Money) C(Commodity) M(More Money).

The “M” stands for the business owner using their starter money to invest in commodities. They get the money from previous work they’ve done. The “C” stands for the business owners using their money to purchase materials, machines, and labor power. The final “M” stands for more money, the things that are produced are sold and labeled at a higher price than how they originally purchased it for, basically selling it for more than they invested into it. The money they make is from the employees creating higher value products, but getting paid less; surplus value.

Posted on by Myeesha

Myeesha Db5.2

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

The formula M-C-M stands for Money, Commodity – More Money

The M is the beginning where the capitalist already starts out with money, they have then the C is commodity. The capitalist uses the money to purchase commodities, labor, materials whatever they need for the service that they’re going to sell,  I believe the commodity is the stage where the capitalist puts money into things to make the product and then the M for more money that comes after production the commodities are sold for a price that’s way higher than what the capitalist paid for it originally.

When this happens, since the capitalist already had money to invest, they keep doing it, and it’s a cycle of accumulation since they already have the money, they can maintain a continuous operation of labor, materials, and commodities. The profit they make comes from the surplus value created by labor, which means workers produce more value than they are paid for.

Posted on by Arto Artinian · 2 Comments

Discussion Board 5.2

  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)

Posted on by Junice Ramirez

Wealth of Capitalist- Junice Ramirez

The M-C-M diagram represents how capitalists build and increase their wealth. It starts with M (Money), where capitalists use their initial funds to invest. They then purchase C (Commodities), which can include raw materials, labor, and machinery needed for production. Once the goods or services are created, they are sold, resulting in M’ (More Money), where profits are generated from selling these products at a higher price than the costs incurred.
This cycle enables capitalists to continuously reinvest their profits, allowing for further growth and accumulation of wealth. A significant aspect of this system is that workers are often paid less than the value of what they produce, creating surplus value that contributes to the profits of the capitalists.