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
Two arrested after US Park Police officer shot in apparent DC ambush: report
Judge grants $1 murder bond for Georgia woman accused of using pills to induce second-trimester abortion
Florida GOP gubernatorial candidate calls for sweeping federal limits on Muslim immigration
NJ Gov. Sherrill attends mosque led by Imam once accused of Hamas ties in deportation case
Ballot box upset: Democrats flip Florida legislative seat in Trump’s stomping ground
Pritzker’s glowing review of lakefront resurfaces after college student killed by illegal alien nearby
President Trump Invokes Jesus While Pushing Senate to Pass the SAVE America Act
Oklahoma Governor Names Energy Executive to Fill DHS Secretary Markwayne Mullin’s Senate Seat
Angel mom, GOP blame Spanberger after illegal immigrant with 30 arrests charged in killing
Alert: Lawmaker Cites TSA Report Confirming Cash Leaving Minneapolis Airport Approached $1 Billion by 2025
Senate confirms DOJ fraud chief as Minnesota daycare scandal draws national scrutiny
BREAKING: Pentagon Reportedly Preparing to Send 3,000 Airborne Troops to Middle East
Op-Ed: Democrats Are Fighting for Ballot Baloney
Aid ships dock in Cuba as country faces economic and energy crisis
NTSB flags ‘conflicting information’ in LaGuardia tower, unclear who handled ground-control duties
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.
