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
Dana White takes questions at podium during White House briefing with Trump
Jeffries vows Democrats won’t ‘give a dime’ to Trump’s deportation efforts
Watch: CNN Interview Blows Up in Garcia’s Face After He Talks About Stephen Miller’s Crimes, But Can’t Name Any… Twice
Breaking: GOP Navy SEAL Vet Holds on to House Seat in Battleground State
FBI investigates suspected homicide aboard MSC Seascape cruise ship after sudden return to Texas
Arizona Republican holds House seat, surviving re-election scare
White House doubles down after Trump angers base by floating illegal alien deal with Dems
Hakeem Jeffries’ Speakership Hopes Take a Blow as Newly Elected Democrats Bring Chaos on Their First Day in D.C.
Next Generation OPIR GEO: Building America’s gateway to the future of space-based missile warning and tracking
Three Former Trump Admin Officials Launch $1 Billion Company That Puts a New Spin on Data Centers
Spanish prime minister calls meeting over ‘migration emergency’ as thousands surge into Canary Islands
Two people arrested after vehicle crashes into sidewalk near White House
Secret Service arrests two after car crash and barricade breach outside White House
Trump’s Sudden Reversal on Immigration Sparks Cries of ‘Betrayal’ from Conservatives, Cheers from Pro-Amnesty GOP Rep.
Kathy Hochul entertains massive political promotion as Democrats look ahead to 2028
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.
