The diagram M–C–M’ helps us understand how capitalists maintain and increase their wealth. In this formula, M stands for money, C for commodities, and M’ for more money than the original amount. The key point is that the capitalist does not start with a product, but with money, the goal is not consumption, but profit.

First, the capitalist uses money (M) to buy commodities (C). These commodities include the means of production (machines, buildings, raw materials) and labor power. Labor power is the worker’s ability to work, and it is treated as a commodity in capitalism. The capitalist pays wages, which represent the value needed to reproduce the worker’s labor power (food, housing, basic needs). However, when production begins, something important happens. Workers produce more value than the value of their wages, part of the working day is necessary labor time, which covers the worker’s wage. But the rest of the working day is surplus labor time. During this time, workers create surplus value, which they are not paid for, and this surplus value becomes profit for the capitalist.

At the end of the process, the capitalist sells the new commodities and ends up with M’ more money than the original investment. This is why M–C–M’ is called the general formula of capital. Money becomes capital when it is used to generate more money through the exploitation of labor. This process explains, as I understand it, how capitalists remain wealthy as a class. They continuously reinvest their money into production, extract surplus value from workers, and accumulate more capital. The system is designed not just to maintain wealth, but to expand it over time.