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
Polish president scrambles back from overseas trip amid Donald Tusk-led ‘coup d’état’ at police-swarmed Constitutional Tribunal
NYT Points to ‘Murky’ Detail in ‘Ilhan Omar’ Brother-Marriage Fraud Probe: The Man Who Married Her
Judge grills Comey’s lawyers over effort to dismiss new charges
Treasury flags $8B in suspicious foreign-directed transfers through US money services firms
Liberal court delivers immigration win for Trump as judge warns of ‘floodgates’ if law firm succeeded
Major Human Trafficking Sting in Florida Nets 281 Arrests – Including Disney Workers
Netanyahu rivals face impossible political decision following official election results: Bibi, Arabs, or failure?
Clancy father targeted in alleged wiretap as medical lawsuits hint at strategy split: cops
Pope Leo makes history in US election with move confirmed by Vatican
Death row killer Christa Pike describes waking up after execution she never expected to survive
Dem operative admits Ilhan Omar case has legs as liberal firewall begins to crack: ‘I’m not stupid’
25 Percent of Non-American Citizens in Single Town Illegally Voted in at Least One Federal Election: Nonprofit
US Economy Continues to Roar as Q3 GDP Growth Hits 3.4 Percent, Blowing Past Predictions
Elon Musk Lays Out Exactly What Dems Will Do If GOP Voters Don’t Show Up at the Polls
Obama Condemns Ilhan Omar Investigation That He Himself Started – Plus 6 More Examples of His Complete Hypocrisy
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.
