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
Breaking: Kimmel Booted from Air Over Kirk Comments, ABC to ‘Replace the Show with Other Programming’
Alert: Multiple Officers Down in PA Shooting, Mexican Consulate Issues Strange Message Immediately After
ABC pulls Jimmy Kimmel indefinitely following Charlie Kirk comments
Pastor: Charlie Kirk’s graphic death was ‘traumatic’ as many Americans reconcile with loss
The Hitchhiker’s Guide to the gambits to avoid a government shutdown over the next few days
Federal Reserve Finally Cuts Interest Rates, Signals It’s Just the Beginning
Charlie Kirk Told Off Donors Who Wanted Him to ‘Keep the Jesus Stuff Out of It,’ Mentor Reveals
Multiple officers involved in Pennsylvania shooting as governor rushes to York County scene
Menendez brothers’ bid for new trial rejected as killer slams judge’s decision as ‘mental gymnastics’
UK government left impotent by courts blocking deportation of illegal migrants
Incredible Reagan campaign relic for sale: $235,000
Newsom dials the rhetoric back up: ‘We’ll lose this democracy’
FLASHBACK: Mamdani labeled Kirk a ‘far-right extremist’ who should be canceled from speaking in NYC
95-Year-Old Woman Charged with Murder After Nursing Home Death
‘We Do Not Teach Victimhood’: Georgia Mentor Teaches Boys About Manhood
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.
