The formula M–C–M′ stands for Money → Commodity → More Money, and it explains how capitalists grow their wealth.

• M (Money): Capitalists start with money.
• C (Commodity): They use that money to buy the means of production (like machines and materials) and labor power (workers).
• M′ (More Money): They sell what’s produced for more money than they spent — the extra is profit or surplus value.

This profit comes from workers producing more value than they are paid. By repeating this cycle, capitalists keep increasing their wealth. The system isn’t about meeting needs — it’s about turning money into more money through labor.