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
Federal judge blocks Alabama redistricting plan in blow to Trump
Markwayne Mullin goes off on Dems’ ‘garbage’ Memorial Day ‘political stunt’ at ICE facility
Alex Murdaugh trial clerk reemerges after explosive ruling upends murder conviction
Chicago sees at least 25 shot over Memorial Day weekend as police cancel officers’ days off
Sports Commentator Blasts Giants QB for Meeting Trump Without ‘Consulting’ Locker Room
Iran Claims to Have Shot Down a US Drone, Threatens Further Retaliation
Trump will head to Walter Reed for his annual physical
Hasan Piker names pro-CCP tycoon Singham as financier of ‘political movements’ despite nonprofit veneer
Massie positions himself for potential political future after primary defeat: ‘I won’t be going away silently’
Trump-backed candidates score major boost from deep-pocketed AI Super PAC in upcoming primaries
How AIPAC’s spending strategy evolved, to the dread of anti-Israel Democrats and Republican detractors
Tulsi Gabbard honors wish of Gold Star wife to visit husband’s grave at Arlington National Cemetery
Trump flexes MAGA muscle in Texas Senate runoff clash between Cornyn and Paxton
Skydiver dies after midair collision with another jumper during group jump in Washington state
Dog accidentally fires shotgun, striking woman yards away during chaotic gas station stop
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.
