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
WATCH: Handcuffed inmate breaks free, punches deputy in wild courthouse escape attempt
Democrat candidate seen sobbing, praying in patrol car after DUI arrest: Video
Maryland family speaks out after ‘4-foot-long’ rabid beaver attacks 13-year-old boy
Watch: Chaos Erupts at Courthouse When Convict Busts Out of His Handcuffs and Charges Through Sheriff’s Deputies
House Passes Legislation Forcing Data Centers to Foot the Bill for Increased Utility Costs
Dem insurgent turns on the charm with party establishment as Schumer leaves bitter feud hanging
Lawmakers say they are standing at the gates against ‘Trojan horses’ promoting malign foreign interests
Skid Row forgeries, illegal votes and a mayoral candidate: Election fraud cases pile up nationwide
Illegal Alien Sentenced to Prison for Multimillion-Dollar Scheme Against Travis Kelce and Others
National Park Service offers plan to mitigate ‘adverse effects’ of Trump arch
Breaking: LA and Calif. Reeling After Woke, Anti-Trump Antics Drive Out Paramount, Taking up to $21B in Output, 60K Jobs, and $1B in Taxes
Thom Tillis urges Michael Whatley not to shy from ‘healthy disagreement’ with Trump
Would-be Trump assassin Thomas Crooks had Snapchat that may hold evidence ‘treasure trove’: former FBI agent
The Hitchhiker’s Guide to Massie saying Johnson is sending the House home early to prevent Hegseth impeachment
Hawley takes aim at ‘corporate welfare’ after GOP-backed tax break boosted controversial industry
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.
