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
Inside the lightning US strike that overwhelmed Venezuela’s defenses and seized Maduro
Alleged J6 Pipe Bomber Pleads Not Guilty After Reportedly Saying He Did it to Defend Biden’s Election Win
J6 Officer Praised By the Media Appears to Call for Violence Against ICE Agents
US raid in Venezuela signals deterrence to adversaries on three fronts, experts say
Rand Paul says Trump’s threat to bomb Iran ‘is not the answer’: Not the ‘job of the American government’
San Antonio ends its abortion travel fund after new state law, legal action
Los Angeles wildfire recovery enters second year as frustration and uncertainty linger
Smithsonian replaces Trump portrait display, strips Jan. 6 and impeachment references from accompanying text
Trump says Greenland’s defense is ‘two dog sleds’ as he pushes for US acquisition of territory
Wild video shows federal agents detaining 2 men at Minnesota gas station as agitators gather
Trump says Iran ‘starting to’ cross US red lines as protesters die in government crackdown
Deadly avalanche claims 2 snowmobilers in Washington state backcountry, 2 rescued
Breaking: Truck Plows Through Anti-Iranian Regime Protest in Los Angeles
Trump’s motorcade route adjusted after Secret Service finds ‘suspicious object’ at Palm Beach airport
Jacob Frey tells critics ‘sorry I offended their delicate ears’ after ICE f-bomb controversy
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.
