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
Two helicopters collide midair near Oregon airport with three people aboard, FAA confirms
Chili’s customers suffer chemical burns after dangerous margarita mix-up
A ghost story in the nation’s Capitol
El-Sayed’s Father Connected to Charity Once Accused of Financially Aiding Saddam Hussein
Minnesota official’s voter guide message on Somali TV triggers viral backlash: ‘Not an accident’
PHOTOS: Trump hosts trick-or-treaters at White House Halloween event
US dual citizen extradited to El Salvador, accused of killing son’s mother and abandoning toddler: DOJ
Harris pushes Georgia Democrats to turn ‘pain into purpose’ in fight against ‘tyrant’ Trump
Watch: Shattered Glass on Ground as DOJ Agents Hit Minneapolis Fraudsters Hard, Launching Multiple Simultaneous Raids Around City
Trump Admin Exposes North Korean Tech-Hiring Scam, US Companies Were Funding the Country’s Weapons
National Democrats leave Mary Peltola to fend for herself amid Alaska Senate scandal
Breaking: Sir Patrick Stewart, Legend from Star Trek and X-Men, Has Died Due to Previously Undisclosed Health Issues
Judge grills AG’s office in Cornell sex assault case as ex-frat bro’s lawyer demands ouster over alleged bias
9 Alleged Cartel-Linked Train Bandits Arrested in California
Dem probes could ‘torture’ young Trump officials with crushing legal bills, subpoenaed conservative warns
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.
