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
‘Free Instacart for Welfare Queens’: California Begins Sending Out Luxury Food Boxes at Taxpayers’ Expense
California Mayor Allegedly Followed, Harassed, Blocked Car of Random Man She Thought Was ICE
Chuck Klosterman’s ‘Rock*’ is an exercise in fantastical pointlessness
Skilled trades now offer direct path to six-figure pay without college debt thanks to emerging tech industry
A look inside the Somali mall where Omar reappeared after DC raid raises more failed assimilation concerns
NYC woman critically injured after being stabbed multiple times while jogging along Brooklyn waterfront
Democrats’ self-inflicted wounds threaten high-stakes Michigan Senate race
Tough Time Finding an Affordable Car? Thank Obama’s Destruction of 680k Working Vehicles in 2009
Texas Claims 9 Rio Grande Islands in Power Move to Deny Cartels Safe Havens
College Hockey Star, Aspiring NYPD Cop Killed in Wrong-Way Crash: It Was a Twice-Deported Illegal Behind the Wheel
Tensions Heat Up in Taiwan Straight as China Shadows US Warship, Separate Maritime Standoff Erupts Near Taiwan
How House Democrats’ ‘deterrence message’ on Trump jobs could backfire
Outrage Erupts Over Minnesota Election Official’s Message on ‘Somali TV’: Doesn’t This Mean Illegals Can Easily Vote?
Pollster Who Predicted Clinton Landslide Against Trump Says GOP Can Still Win Midterms: ‘Lot of Winning Combinations’
Veteran Dem operative says subpar GOP candidates poised to hand over Senate majority
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.
