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
Photos show aftermath of riots as masked groups clash with police across France
Pro-Israel leader warns Democrats failing to condemn ‘vicious Jew haters’ in Congress
Brother of possible OJ Simpson accomplice claims he returned with bloody hands on night of murders: report
Obama backs Ilhan Omar amid probe, accuses Trump admin of ‘appalling’ targeting in lengthy statement
Breaking: Airman Dies in Front of Tens of Thousands in Tragic Navy-UTSA Football Game Accident After Falling from Rafters
James Talarico’s adoptive father linked to X account mocking Christianity and women
Fauci Diary Entry Complains Trump Pushed Lab-Leak Theory ‘With No Evidence’
Cyberattack Turns Hundreds of Grocery Coolers Into Saunas – Dozens of US Military Stores Faced Similar, Unexplained Attack
Saudi National Caught by FBI Hiding Bug in Toilet Paper to Steal AI Secrets: Report
The nine key races that will decide who controls the Senate, and where they stand
Trump tries different approach with Russia to bring Americans relief amid ongoing war with Ukraine
WATCH: Virginia cops crawl through burning house to save man trapped in fire
House panel warns Singham-linked nonprofits: Comply with subpoenas or face Congress
Lawsuit Accuses McDonald’s of AI Scheme to Nickel-And-Dime Customers ‘Down to the Last French Fry’
Even NBC Admits It: Trump Rallies Are Galvanizing Voters, Could Impact Midterms in Battleground States
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.
