Finance News Opinons Politics

Apparently, Bernie Sanders Doesn’t Know the Difference Between Revenue and Profit

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:


Navy sailor admits killing fellow service member as mother questions missed warning signs
DHS approves plan to verify voter citizenship, monitor mail ballots as Trump push intensifies
DOJ Vows Action After California Blocks Federal Audit of Voter Rolls: ‘What Are They Afraid Of?’
Supreme Court Slaps Down Lower Court Ruling That Backed Biden Admin’s War on Natural Gas Appliances
New Jersey Democrats advance bill criminalizing interference with abortion, transgender healthcare
Platner floats jailing billionaires in fiery pre-primary speech pushing far-left agenda
Church cans patriotic staple on Biden’s posh vacation enclave — pastor says tradition ‘doesn’t cut it’
Platner’s ‘living on the sea’ claim dismantled by critics as financial docs paint a different picture
Trump-pardoned MPD officers sue US over fatal pursuit prosecution
Voter fraud or a ‘red mirage’? Why Spencer Pratt’s fate and the LA mayoral results are so complicated
Steve Hilton says ‘world is laughing’ at California’s vote counting process as he pushes reform plan
Alex Murdaugh murder case gets new judge as retrial looms following Supreme Court reversal
Trump Admin to Strip US Citizenship from Foreigners Suspected of Immigration Fraud in Historic Crackdown
New video shows Coast Guard’s Bahamas hunt as team dives into forensics exam of seized Lynette Hooker dinghy
‘Depraved Things’: Watch Fetterman Blast Platner, Challenge Him to Prove He Didn’t Send ‘D*** Pics’ to Underage Girls
See also  Thune moves to neutralize immigration bill landmines from DOJ lawfare fund

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.

Share this article:
Share on Facebook
Facebook
Tweet about this on Twitter
Twitter