- In small-scale production C–M–C, people sell something they made just so they can buy something they need. The goal is to survive, not to get rich. The value at the end is basically the same as what they started with. Capitalism is the opposite. It follows the formula M–C–M, which means money turns into more money. A capitalist starts with money and use it to buy things like machines, materials, and most definitely labor power. Labor power are workers ability to work. Then they sell the finished products for more money. The extra money is called surplus value. The reason they end up with more money is because workers create more value than they are paid for. By lunch time workers have already made enough value to cover their wages, which is called necessary labor. Even though they made enough they keep working and the extra value they create is called surplus labor. The capitalist keeps that extra value as profit. So capitalists stay wealthy by repeating this process over and over using money to buy labor power, getting surplus value from workers, and turning it into even more money. So that’s how M–C–M′ helps them increase their wealth.
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