The M-C-M’ formula explains how capitalists stay rich and grow their wealth.

M (Money): A capitalist starts with money.

C (Commodity): They use that money to buy something—like materials, factories, or labor—to create a product.

M’ (More Money): They sell the product for more than they spent, making a profit (M’ is greater than M).

The extra money (M’ – M) is called surplus class which mostly comes from paying workers less than the full value of what they produce. By repeating this cycle over and over, capitalists keep increasing their wealth.