How does the capitalist maintain and increase their wealth?

In Pierre Jalee’s book, How Capitalism Works, we are introduced with two ways in how money is transacted in society. There is small-scale commodity production, or CMC, and Jalee’s description of it is “both peasant and artisan were selling in order to buy.” Both classes would sell their own produced goods for money in order to buy other goods/necessities that they maybe couldn’t produce themselves. The capitalist does not participate in this commodity production. The capitalist is a capitalist because they already own capital and therefore have money. But, in order to continue having that capital, they must use that money to buy labor and/or capital in order to make a surplus value in their production of goods and services, which would then be known as a profit. This sequence of transactions is called the general formula of capital, or MCM’, where M’ equals M plus the surplus value (m) that is created during production. This surplus value is created from the labor of the capitalist’s workers. Because the workers are paid a fixed value for the time they exchange for their labor, the value of their production is worth more than the cost that the capitalist spend on their labor. The capitalist must pay their workers a wage/salary that is less than the value of their production in order to maintain and increase their wealth, or else there would be no surplus value for them to make a profit from.

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