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
James Carville, Dem With Deteriorating Mental State, Says CNN Should Have Aired Presidential Speech to Show Trump’s Deteriorating Mental State
‘Keep a low profile’: State Department warns Americans overseas they could be targeted
Authorities Identify Source of Nationwide Cyclospora Outbreak: Salad Distributer Used By Taco Bell
Johnson warns America is in ‘battle’ against Marxism, calls for renewed focus on nation’s founding principles
Extreme Climate Model Scenario Was Widely Used Despite Being Impossible
Controversial program paying drug users for used syringes becomes permanent in NYC
Education Department Moves To Crack Down On Schools, Teachers Unions Protecting Sexual Predators
Alabama man charged with killing military veteran, wife had posted about them online for a decade
Lindsay Clancy’s husband could testify for her at trial over deaths of their three children
ICE melting under Trump’s expectations, officers say
Olivia Rodrigo’s new album defies expectations, including her audience’s
Who is Nikki Floris? Ex-FBI official behind Trump’s ‘shadow government’ rhetoric during election address
WATCH: Josh Hawley issues blistering rebuke of McConnell over ‘obligation’ to country
Tulsi Gabbard’s brother charged after allegedly trying to lure children to Waikīkī hotel room: police
Andrew, Tristan Tate arrested in Miami as UK seeks extradition on expanded rape, trafficking charges
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.
