Capitalists maintain wealth using M-C-M which stands for Money-Commodity-Money. The way the capitalist class uses this method is by investing in commodities and selling them on the market getting profit in return leading to more money. An example of this would be a realtor who invests in properties and leases them to the public for profit. M-C-M will always lead to more money while C-M-C does not as the average person has to work to get more money to provide for themselves which is how the Capitalist class maintains their wealth and how the working class ends up being stuck always trying to make more money to provide for themselves.

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)

Capitalists maintain and increase their wealth because they start the equation M-C-M off with money. This means that they don’t even sell a commodity in order to receive money to buy another commodity. It is harder when somebody has to sell a commodity to gain money because now, they have to buy something more valuable than the commodity they have sold for the same price they were given for said commodity. When M-C-M ends with money or capital, more money than the initial amount, the capitalists can invest and keep the trend going.

A capitalist remains wealthy by M-C-M. M-C-M’ (Money-Commodity- more money than capital you started with) is the strategy used by the wealthy people to increase their wealth by keeping it. They have surplus of money. They use their money to acquire commodities and sold them for a higher sum of money. For example, a wealthy person invests his money in purchasing many real estates. He rent out these properties to working class people by charging them a fee. He not only gets money from the rent, but also grows his assets overtime and grows his capital. 

Capitalists accumulate and grow their wealth by paying workers less than the value of the products they produce. This disparity allows capitalists to retain a larger share of the revenue generated by the sale of those products. It’s important to note that capital itself doesn’t set prices; rather, prices are determined by the labor invested in creating goods and services. This dynamic often results in workers receiving a smaller portion of the overall value they help to create, while capitalists profit disproportionately.

The M-C-M’ equation is a representation of capitalism. Initially, M refers to the value of a commodity that enters the production system with constant capital (machinery, buildings, materials), and variable capital (wages and salaries for the labor force). This input of capital is used to produce M’ commodities with a resulting value higher than the initial value of the merchandise. 

In this equation, the capitalist introduces capital to create a production system that results in an increasing value of the resulting M’ commodities. The rate of increase in the value of M’ may be growing due to the so-called Productivity by Surplus Value and Surplus Labor. This refers to the application of certain productive techniques on the Labor Power, where the capitalist exerts pressure on workers to use more physical and mental effort to increase the number of units of production in less time. Additionally, a scientific strategy for the use of constant capital is studied to ensure efficiency. These efforts combined translate into a growing amount of capital that produces wealth and can be reinvested in the same productive system for more M’ goods and new investments, which mean more capital. 

1. Capitalists maintain and increase their wealth by for example the worker creating the product for the capitalist pays him a lower salary than the value of the product . The capitalists ends up getting a larger amount of money while the worker earns less . Capital cannot price anything it is thing that is produced by labor .

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)