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
Pennsylvania man accused of fatal arson after woman allegedly rejected his advances
Virginia Dems Make Glaring Errors In Rushed Court Motion To Save Gerrymandering Scheme
Hegseth says Pentagon will review Mark Kelly’s public statements about classified briefing amid ongoing feud
Rebukes of Trump’s Pick for FDA Head Miss One Critical Fact
Union-funded anti-Spencer Pratt ad sparks backlash as critics say it could help him
Students’ pre-prom gathering turns into deadly nightmare as bullets fly
Marco Rubio Reveals the Message He Delivered Pope Leo During ‘Important Meeting’ at Vatican
Mom charged with child abuse after toddler found with tattoo in ‘deplorable’ home: cops
Trump says US helped secure release of 5 prisoners in Belarus deal, thanks Lukashenko
Savannah Guthrie urges public to help find missing mother Nancy in emotional Mother’s Day post
Kristin Smart search ends with no remains found as detectives analyze evidence
Watch: MLB Team Makes ‘Middle School Mistake’ As Season Continues to Spiral
Biden seeks to block DOJ release of 2017 audio, court filing says
Should ‘The View’ Be Considered News? ABC and FCC Go to Battle Over Embattled Show
Major Evangelic Denomination Sees Memberships Fall Amid Debates Over Female Pastors, Growing Distrust
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.
