Earlier quoted context omitted.
> People frame these unpaid internships as some great act of heroic entrepreneurial spirit, and they're not. I'm not calling them "heroic". I'm just annoyed that other people are casting them as "evil". They can be mutually beneficial, and I don't see a problem with that. The "evil" is people trying to prohibit mutually beneficial transactions. By the way, I love the entrepreneurial spirit. I just don't love the "you…
Then look at it this way. Barter is taxed, and working for free for "experience" is clearly a form of barter. Unpaid internships still must be taxed. They will probably be taxed at a higher prevailing wage than minimum wage. So, you have tax payment going on, while no employment paying is going on. Meanwhile back at the ranch, rich or reasonably well-off kids can take free internships, which creates more free interns…
You're assuming that the cost of providing internships is essentially zero. When the likelihood of internships being offered at all (based on cost) is factored into things, your argument falls apart.