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
NEA insider blows whistle on ‘toxic’ culture and far-left politics inside teachers union: ‘It’s a cult’
Trump Forces the Fake News to Stare at the Mugshots of Violent Illegal Criminals Caught By ICE
GOP Barely Passes DHS, ICE Funding Thanks to 7 Democrats Who Defied Their Party
Doubts abound about proposed dual citizenship ban
Maine’s bipartisan brand of political nepotism
Texas hold ’em: Greg Abbott argues he set the standard for governors and illegal immigration
Nevada judge retires after court grants protective order to attorney she was accused of stalking
Trump says US should have tested NATO by invoking Article 5 over border security
Top 5 moments from Jack Smith’s testimony on Capitol Hill
Trump snubs Canada by withdrawing country’s invite to join ‘most prestigious Board of Leaders ever’
Newly minted Virginia AG who fantasized about opponent’s family dying roasted over glaring typo
Video captures Detroit student allegedly wielding box cutter in classroom chase as teacher intervenes
RNC eyes ‘America First’ midterm convention to boost Trump, GOP ahead of critical elections
Inside ‘MELANIA’: The unprecedented access behind Melania Trump’s first film
Armed carjacker’s wild Corvette rampage turns downtown into war zone; sergeant wounded in deadly shootout
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.
