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
Trump demand puts vulnerable Republicans in impossible spot ahead of midterms
Anti-Violence Activist Allegedly Stabs Woman With Box Cutter
Obama Granted Bill Gates Top Secret Clearance At Energy Department
Fauci’s diary details how his relationship with Trump soured
It’s OK to be nostalgic about Woody Allen’s ‘Midnight in Paris’
The race to replace Gretchen Whitmer in Michigan
Inside the behemoth Smithsonian museum network drawing fire from the Trump administration
Vulnerable Democrat warns party to ‘fight back’ against growing socialist movement
Louisiana becomes latest state to launch Fauci investigation following explosive Senate hearing
New Mexico woman’s bodycam confession about hiding newborn baby in hospital garbage tossed by state court
Fox News Campus Radicals Newsletter: Parents left in the dark, Trump starving socialist breeding grounds
Democratic socialist headed for $142K legislature salary begs for rent handout, deletes post after backlash
Multiple people killed in shooting at Idaho In-N-Out restaurant, suspect dead
ICE arrests illegal immigrant accused of rape, multiple sex crimes after release from Maryland jail
Father of 10-year-old boy breaks silence after viral beach rescue: ‘No way I could ever repay him’
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.
