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
Hero High School Principal Takes a Bullet to Stop School Shooter
DOJ Opens Criminal Investigation Into Cassidy Hutchinson, Democrats’ Star Jan. 6 Witness: Report
Top school district slapped with complaint alleging ‘elaborate system’ to keep kids’ gender transitions secret
Fox News Poll: Record number say taxes are too high; government spending seen as wasteful
Suspect accused of killing Iryna Zarutska ‘incapable to proceed’ on his charge
Video: ‘In the Name of Allah’ – Man with Knife Arrested in Ohio for Threatening to Kill Father, Then Chasing His Unsuspecting Daughter
Charlotte light-rail murder suspect ruled incompetent to stand trial as history of crazed claims trails case
Top GOP hawk Graham warns Iran deal has ‘troubling aspects’ as ceasefire begins
JD Vance’s Task Force Uncovers $6 Billion in Potential Fraud, Begins Taking Action: Report
Trump admin scores Minnesota court win in Medicaid fraud crackdown
Shapiro tells Democrats to move past anti-Trump rhetoric at Al Sharpton’s confab
Ex-paramedic accused of drip-feeding wife to death—then faking his own kidnapping when heat turned up
Hungarian success in befriending American conservatives on display as Orban faces down possible defeat
Dem Senate nominee distances herself from Kamala Harris ahead of visit: ‘Will not be attending’
Rex Heuermann, suspected Gilgo Beach serial killer, pleads guilty to seven killings
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.
