This morning, Democratic presidential candidate and Vermont Sen. Bernie Sanders (I) tweeted out his support for efforts to unionize the video game industry. He did so in a fashion truly appropriate for the man—one that made it clear that he doesn’t always grasp basic economics:
The video game industry made $43 billion in revenue last year. The workers responsible for that profit deserve to collectively bargain as part of a union. I'm glad to see unions like @IATSE and the broader @GameWorkers movement organizing such workers. https://t.co/Ia5gMG2v0w
— Bernie Sanders (@BernieSanders) June 18, 2019
Patel says FBI has cut bureaucracy, moved 1,000 agents to field offices in ‘generational’ overhaul
Dem Senate candidate Sherrod Brown claims he supports ‘closing the border’; GOP says record proves otherwise
Dem Deletes X Posts After Trashing State She Is Seeking to Represent
Steak n’ Shake Worker Murdered Over Argument About Onion Rings
School Officer Stops Armed Teenager Before He Enters Building
2 US service members missing in Morocco after multinational military exercise, search underway
Colorado Dems Pass Law Banning Pet Stores from Selling Dogs and Cats
Rubio to visit Italy, Vatican amid troop drawdown call, tension with Trump, Pope Leo: reports
Somali Fraud Is Only a Drop in the Bucket Compared to This Indian Fraud Scheme
Cole Allen’s cross-country train musings show ‘scattered’ mindset of accused would-be Trump killer: expert
Midterm countdown: Democrats lead early, but GOP sees a path through the map
The ballot box showdowns this month that you need to watch
Massive fire destroys University of South Florida laboratory building: ‘Total loss’
War with Iran Poised to Erupt Again After Weeks of Ceasefire If Peace Talks Fail
Car Enthusiast Jerry Seinfeld Blasts EVs: ‘It’s a Big, Stupid Virtue Signal’
In the tweet, Sanders confuses “revenue” with “profit.” This is not an insignificant mistake, but it’s one that is common in reporting about large American corporations. All too often, reporters talk about how much money a company takes in without offering any analysis of that company’s expenses. Amazon, for example, despite massive revenues has only recently begun making an actual profit. In the Time story that Sanders links to, writer Alana Semuels similarly fails to differentiate between revenue and profit when covering the efforts to organize.
It’s true that the game industry did bring in $42 billion in revenue last year from customers in the United States (and nearly $140 billion worldwide). But revenue is the money a company brings in before deducting its expenses, like, for example, workers’ wages. So, in reality, video game industry workers did get a cut of those billions. It’s only after such workers are paid (and other expenses are deducted) that we can talk about profit.
Sanders, of course, has a long history of failing to grasp the basics of market economics. He frequently sees marketplace choices as a threat, even as they open avenues and opportunities for our poorest citizens or provide all of us with ever improving mass entertainment.
Story cited here.
