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
Immediate Impact Seen at CNN HQ as Paramount and Warner Bros. Finalize Controversial Mega Merger
Nebraska’s Dan Osborn says mocking Trump voters ‘came from a place of passion’
ICE Hunting for 2 Illegal Aliens Suspected of Stabbing an NYPD Officer 3 Years After Biden Released Them Into the U.S.
El Sayed creates ‘Mike Rogers is watching you’ website highlighting work on Patriot Act
Russian researcher’s mystery death could be ‘far worse’ than the plague, former senior Trump official warns
Lithuania moves to allow nuclear weapons on its territory, sparking threats of ‘escalation’ from Russia
Liberal justices look for ‘escape hatch’ as high-stakes climate case lands at Supreme Court, experts say
Judge Slams Mamdani’s ‘Arbitrary’ and ‘Capricious’ Tax, Hands New Yorkers Major Legal Victory
Icon Missing from Florida Church for 100 Years Turns Up on a Back Wall in Another Country
Trump turns to emerging tech giant in multi-billion bid to ramp up US submarine production
Trump sparks outrage for suggesting that Iran could ‘take out’ Los Angeles and San Diego
Blue city emerges as ‘suspected hotspot’ of visa fraud as swing state lawmaker demands answers
Peter Navarro seeks Supreme Court review as Trump allies brace for Democratic subpoenas
Another Country Singer Betrays: Built Career on Decent Fans, Now Zach Bryan Trades Them for Terror Apologists
DNA testing confirms body of flight attendant who was killed and thrown from bridge
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.
