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
Daughter of late House Dem forced into runoff after falling short in special election
Mamdani Slammed for ‘Reckless and Foolish’ Doxxing of Thousands of Wealthy New Yorkers
White House Issues Update After High-Stakes Meetings with Netanyahu and Zelenskyy
Putin, Russia put on notice as Senate takes crucial step to grind down the Kremlin’s war machine
Experts scorch Mamdani’s grocery plan as an ‘illusion’ that will have taxpayers footing the bill
Iran has struck 14 Middle Eastern nations. Here’s what they have at stake in the war
Leading economist warns of rise of ‘Gen Z affordability socialism’
Pentagon to Honor Lindsey Graham by Renaming Military Base
Nolan Wells mystery deepens as email indicates teen drank heavily before vanishing
Cracker Barrel CEO Out After Alienating Loyal Customers with Controversial Changes
Trump to award top civilian honor to teenage lifeguard who saved child
Haley Stevens shreds Abdul El-Sayed: ‘We don’t need a celebrity candidate’
Supreme Court denies stays for two Florida death row inmates, clearing path for rare double execution
Watch: Trump Unhappy with Netanyahu’s Strategy Ahead of White House Meeting
Trump’s war on fraud expands as Treasury launches new site with whistleblower incentives
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.
