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
After Telling Them to Leave, Hochul Begs New Yorkers Who Fled to FL: Please Come Back – And Drag Your Friends Back, Too – To Pay Our High Taxes
Revealed: Biden Admin Handed ‘Sweetheart Settlement’ to Iranian Front Group on Final Days in Office
Cuban exiles in Miami say ‘this is the end’ for communism as island teeters on collapse
Advantages and drawbacks emerge from Trump-backed US data center expansion
Far-left firebrand dodges questions over hiring bodyguard with criminal history
Iran war’s effect on interest remains a looming unknown
The reality TV kids are not alright
Man accused of shooting father in face with crossbow captured after snowy manhunt
Late Breaking: Deadly Chaos in NYC as SUV Driven by Man, 49, Plows Into Vehicles and Sends People Literally Flying
Feds charge 3 in $2.5b scheme to smuggle us AI tech to China using dummy servers
Missing University of Alabama student Jimmy Gracey found dead in Barcelona
Indiana University philanthropy group allegedly led fundraising training with Hamas-linked ‘sham charity’
ALERT: James Comey Subpoenaed by DOJ as ‘Grand Conspiracy’ Probe Into Political Lawfare Gains Momentum
NYC Teen Arrested in Horrific Attack on Mother of Three: ‘He Deserves Exactly What Is Coming to Him’
Developing: It Appears Joe Biden Kept Tribute to Child Rapist in His Oval Office – How It Got There Makes It Worse
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.
