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
Bill Gates Speaks Out on His Inclusion in Newly Released Epstein Documents
Noem vows criminal prosecution after catching alleged DHS ‘prolific leaker’
‘Melania’ Documentary Director Says ‘Divine Intervention’ Brought Him to the Surprise Hit Project
Anti-ICE activists plan to install 1,000 street blockades across Minneapolis
Putin and Trump plan dueling visits to China in battle to gain Xi’s favor
House GOP moves to block DC from stopping Trump tax cuts for tipped, overtime workers
Man accused of murdering National Guard member in DC pleads not guilty
Florida hospital worker allegedly stole wallet from 94-year-old patient, racked up $500 on credit cards
Breaking: Would-Be Trump Assassin Ryan Routh Learns His Sentence
Border czar Tom Homan calls anti-ICE roadblocks in Minneapolis a ‘joke’ after police chief disbands them
Supreme Court shuts down California GOP bid to block Newsom’s new map
Watch: Scott Bessent Has Perfect Response When Maxine Waters Says ‘Shut Him Up’ During Hearing
Nine charged in bold gun-running scheme to push heavy firepower across southern border
Trump to conduct pre-game Super Bowl interview with NBC after playing hooky in 2018
Nicki Minaj cites higher suicide risks for opposition to transgender surgeries for minors
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.
