I understand M-C-M as the way of capitalism to increase the profit every time money flows in society.

M= stands for money which is the initial investment, used to make purchases such as raw materials, labor and what is needed for production

C= Stands for commodities these are transformed into goods and services that hold value

M= Stands for money but this time (more money) after the profit gotten from the commodities, there must be a profit to meet this one

this way companies and employees keep growing their wealth as inflation keeps going up, but sometimes inflation is rising faster than the growth of money it self

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.

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)