According to the reading, M-C-M’ is a formula used to help us understand how capitalism works. <\/p>\n\n\n\n
M= Money (initial capital)<\/p>\n\n\n\n
C= Commodity (goods or labor)<\/p>\n\n\n\n
M’ = More Money ( money gained after selling the commodity, M + surplus)<\/p>\n\n\n\n
A capitalist starts with money (M) and uses it to buy commodities (C), which can be raw materials, machinery or labor power. He then uses the commodities to produce goods or services, which are sold for more money (M’) than originally invested. This “more money” is the surplus value, the profit. The surplus value comes from nowhere but the labor.<\/p>\n\n\n\n
What makes the capitalists even more wealthy is the fact that they do not just sell goods but to turn money into more money and this process is repeated to accumulate more and more money. They also pay workers less than the value they produce called exploitation thus having an increase in wealth. It’s an endless cycle.<\/p>\n","protected":false},"excerpt":{"rendered":"
According to the reading, M-C-M’ is a formula used to help us understand how capitalism works. M= Money (initial capital) C= Commodity (goods or labor) M’ = More Money ( money gained after selling the commodity, M + surplus) A capitalist starts with money (M) and uses it to buy commodities (C), which can be…<\/p>\n","protected":false},"author":10652,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"portfolio_post_id":0,"portfolio_citation":"","portfolio_annotation":"","openlab_post_visibility":"","footnotes":""},"categories":[17],"tags":[],"class_list":["post-6346","post","type-post","status-publish","format-standard","hentry","category-discussion-board-5-2"],"_links":{"self":[{"href":"https:\/\/openlab.bmcc.cuny.edu\/pol-100-a051-american-government-summer-2025\/wp-json\/wp\/v2\/posts\/6346","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/openlab.bmcc.cuny.edu\/pol-100-a051-american-government-summer-2025\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/openlab.bmcc.cuny.edu\/pol-100-a051-american-government-summer-2025\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/openlab.bmcc.cuny.edu\/pol-100-a051-american-government-summer-2025\/wp-json\/wp\/v2\/users\/10652"}],"replies":[{"embeddable":true,"href":"https:\/\/openlab.bmcc.cuny.edu\/pol-100-a051-american-government-summer-2025\/wp-json\/wp\/v2\/comments?post=6346"}],"version-history":[{"count":1,"href":"https:\/\/openlab.bmcc.cuny.edu\/pol-100-a051-american-government-summer-2025\/wp-json\/wp\/v2\/posts\/6346\/revisions"}],"predecessor-version":[{"id":6347,"href":"https:\/\/openlab.bmcc.cuny.edu\/pol-100-a051-american-government-summer-2025\/wp-json\/wp\/v2\/posts\/6346\/revisions\/6347"}],"wp:attachment":[{"href":"https:\/\/openlab.bmcc.cuny.edu\/pol-100-a051-american-government-summer-2025\/wp-json\/wp\/v2\/media?parent=6346"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/openlab.bmcc.cuny.edu\/pol-100-a051-american-government-summer-2025\/wp-json\/wp\/v2\/categories?post=6346"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/openlab.bmcc.cuny.edu\/pol-100-a051-american-government-summer-2025\/wp-json\/wp\/v2\/tags?post=6346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}