Why is the general formula of capital expressed as M–C–M′ rather than C–M–C, according to Marx?

Question

BlackTom AI · Accepted Answer

To unpack this question, consider how Karl Marx describes the circuit of capital in a capitalist economy.
Option presented: 'Because it reflects that in capitalism, production starts from money, moves through the purchase of commodities (especially labor-power), and ends with more money, highlighting that the real goal is monetary expansion, not consumption.'
First, the sequence M–C–M′ emphasizes that capital begins with money (M), which is exchanged for commodities (C) — notably labor-power along with raw materials and means of production — to produce new goods or services. The critical twist is that the end product is not simply consumed but sold to yield a greater amount of money (M′). This framing captures the fundamental logic of capital accumulation: the aim is to increase value by turning money into more money, rather than directly satisfying immediate consumption needs.
Second, by foregrounding money as the starting point, the formula highlights the social form of capital in capitalist society: the value-creating process is driven by monetary expansion and surplus-value extraction via labor and other inputs, culminating in a higher money return (M′) after sale. This aligns with Marx’s analysis of the circuit as a process of self-expansion, where the monetary motive drives production decisions and the organization of labor, rather than a simple act of exchanging goods for goods or consuming produced goods.
Third, addressing why not C–M–C: if one started with commodities (C) and ended with commodities, the focus would be on exchange and use-values, not on capital growth. The C–M–C schema would describe mere commodity exchange and consumption cycles, lacking the explicit emphasis on accumulation inherent in capitalism. The M–C–M′ formulation signals that the essence of capital is to convert money into more money through production and sale, not to directly satisfy consumption through a purely circular commodity exchange.
Fourth, the specific mention of labor-power underscores that the source of surplus value in Marx’s critique lies in exploitation of labor within the production process, which is integral to why the end result is M′ greater than M. By making labor-power a key input in C, the circuit explains how value is created and expanded beyond the initial monetary input.
In summary, the M–C–M′ route is chosen to highlight capital’s logic of starting with money, investing in production (via commodities and especially labor-power), and ending with a greater amount of money, thereby signaling monetary expansion and accumulation rather than immediate consumption.

ECON 5080-090 Summer 2025 Week 7 - Quiz

Why is the general formula of capital expressed as M–C–M′ rather than C–M–C, according to Marx?

查看解析

登录即可查看完整答案

类似问题

In a consumer society, many adults channel creativity into buying things

Economic stress and unpredictable times have resulted in a booming industry for self-help products

People born without creativity never can develop it

A product has a selling price of $20, a contribution margin ratio of 40% and fixed cost of $120,000. To make a profit of $30,000. The number of units that must be sold is: Type the number without $ and a comma. Eg: 20000

Which of the following statement regarding cost is correct:

Under the assumptions used in cost-volume-profit analysis, as the activity increases:

The CVP and break-even analysis are supported by a range of important assumptions. Which of the following is not an assumption of the CVP:

The break-even point is that at which:

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单