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
Powerful Dem’s jabs at Trump come back to haunt her after office raided by FBI: ‘Aged well’
DeSantis hits Obama with brutal one-line response to DOJ politicization accusation: ‘Would like a word’
Karoline Leavitt welcomes daughter Viviana: ‘perfect and healthy’
EXCLUSIVE: Harvard-Trained MD Says ‘Coercive’ Vaccine Push Shattered Trust and Has Harris Voters Questioning the Experts
Watch: Hero Dad With a Gun Takes on Carjacker Who Turned Out to Be an Illegal… and Is Now Dead
Rabid beaver attacks boy fishing at New Jersey lake, prompting health officials to warn residents
Hantavirus cruise death toll rises to five after eight confirmed infections: WHO
Gorsuch highlights staggering decline in civic literacy that prompted him to author new book
Top Spanberger ally targeted in FBI corruption probe has long history of controversy
Watch: Tom Homan Ruins Kathy Hochul’s Night With Unexpected Update on Trump Policy on Live TV
Border Patrol Raids Disney Cruise Ship, Finds Every Parent’s Nightmare Lurking on Board – This Is What Dems Want Defunded
Feds seize mountain of fentanyl from ‘open-air drug market’ in massive crackdown targeting gang crews
Americans keep moving to Texas and Florida — but one other red state is growing even faster
China orders firms to ignore US Iran sanctions, daring US to enforce crackdown
Mamdani Berates Billionaire Outside His Residence Near UnitedHealthcare CEO Assassination Site
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.
