Finance News Opinons Politics

Apparently, Bernie Sanders Doesn’t Know the Difference Between Revenue and Profit

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:


James Patterson claims Marilyn Monroe was murdered in explosive new book theory
Florida’s Lawsuit Against Planned Parenthood Just the Beginning
Texas girl rescued after sand hole she was digging collapses, burying her
Unbelievable – She Might Actually Win a District Dominated By Trump: Democrat Aftyn Behn’s Most Unhinged Moments
Afghan Suspect Faces First-Degree Murder Charge in National Guard Shooting
WSJ Editorial Board Rushes to Defend Afghan Refugees After Deadly National Guard Attack
Watchdog group hits Letitia James with bar complaint after federal judge tosses case
Inside NORAD’s holiday command: How the same team that tracks Santa guards North America
Former Ukrainian ‘co-president’ Yermak says he’s ‘going to the front’ after shock resignation
National Guardsman shot in DC is ‘hanging on,’ family pleading for prayer, congressman says
Criminal networks exploit US interstates to make human trafficking victims vanish: ‘Real plague’
Meta Tolerated Sex Traffickers With 17-Strike System, Lawsuit Claims
This Is Why You Can’t Trust Public Schools: Teachers Union Teaches ‘Interrupting Whiteness’
Hegseth defends lethal strikes against alleged drug traffickers: ‘Biden coddled terrorists, we kill them’
White House implored to institutionalize DOGE after reports of premature demise
See also  Shedeur Sanders responds to Trump’s support after first win: ‘I TOLD YOU SO’

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.

Share this article:
Share on Facebook
Facebook
Tweet about this on Twitter
Twitter