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
Court filings reveal Kyrsten Sinema had sex multiple times with married bodyguard while serving as senator
Justice Thomas reveals this elite institution is ‘off limits’ to him: ‘That’s the world we’re in’
Military Identifies 2 Soldiers Killed in Texas Helicopter Crash Earlier This Week
Shooting Rocks University Campus as School Prepares for Classes to Resume
Companies Back Down After Red State AG’s Debanking Probe
He’s Baaaack: Platner Returns to Political Spotlight as His Replacement Deals with a Domestic Violence Allegation of His Own
Nearly One-in-Six Americans Have Acted on AI Medical Advice Without Speaking to Human, Poll Shows
Florida cold case suspect allegedly confesses to 1987 murder and reveals secret crime-scene details
Virginia State University shooting: At least 5 injured, one critically
ICYMI: Judge Shuts Down Democrats’ Attempt to Rush in Late Votes After Candidates Drop Out
Top Dem operative brushes off latest scandal plaguing Maine Senate candidate as ‘salacious gossip’
DSA brand on trial as El-Sayed struggles where Dems can least afford it
Gun rights gets ‘greatest restoration’ in 100 years with latest Trump DOJ move, lawmaker hails
Socialist in Trump country gives Karl Marx vision thumbs-up before ducking key tax question
Democrats realize they love Haley Stevens, just a little too late
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.
