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
China-linked green group training US judges draws fresh heat as foreign ties fuel pressure at home
Mamdani gets roasted after telling sweltering New Yorkers to set ACs to 78 degrees: ‘Commie’
Thanks to Climate Panic, It’s 100 Degrees Inside a ‘Flagship’ Hospital Building – This Is What Leftists Want for Us (but Not Themselves)
WATCH: Trump Holds Conversation With AI Teddy Roosevelt, Gets Fresh Encouragement That He’s on the Right Path
America’s housing market could run out of something more important than homes
How Iran attacks are forcing the Pentagon to rethink its decades-old Middle East base strategy
Baby Beaten Nearly to Death by Children, 4 and 6, as Sitter Gives Most Nauseating Excuse We’ve Ever Heard
Ukraine’s 40-day missile and drone blitz heaps pressure and pain on Putin
DeSantis announces plans to use new state law to target dozens of alleged terrorist groups
Acting AG Todd Blanche says Newsom’s DOJ claims are not ‘grounded in fact’
Mexican national sentenced in border child smuggling case involving THC-laced candy
Virginia officer placed on administrative leave after malicious wounding charge tied to off duty incident
Two arrested at Costco after alleged fraudulent credit card shopping spree
Russian missile attack on Kyiv collapses apartment building, trapping residents
Wild video captures apartment complex electrical room explosion as firefighters investigate smoke call
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.
