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
DOJ threatens to cut billions in welfare funding from states for failing to report illegal migrants
Pentagon orders mandatory testosterone tests for male troops 30 and older
Social media is Lindsay Clancy wild card that could tilt potential retrial to the defense, retired judge says
US military boards, searches and sinks vessel allegedly supporting Los Choneros narco-terrorists
15-year-old accused of firing into crowd during deadly Seattle mass shooting claims self-defense
Maine’s high court gives father final say over daughter’s church attendance
FAA seeks permanent airspace restrictions near Trump’s Mar-a-Lago as expert warns rules are ‘not good enough’
Watch: Black Entrepreneur Humiliates Jemele Hill on CNN After She Claims Capitalism and White Supremacy Are Connected
The primary is over; now come the primetime mistakes
Trump Clarifies Stakes of Texas Senate Battle: If Talarico Wins, ‘I Will Be the Last Republican President’
Blue state creates six-figure role for trans inmate services amid budget shortfalls
Vance’s mom fires back at El-Sayed over second family jabs: ‘Probably punch him’
Breaking: Mass Shooting in Downtown Minneapolis, Civilian Killed, Officers Shot
NFL Fans Stunned to Learn of Subtle Field-Goal Trick the Patriots Used Against Opponents in the Belichick Era
Apple Relents to Pressure from Trump, Makes ‘Lake America’ Change on Maps App
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.
