Do economic sectors built on prepaid and "pay to play" labor exist? If so, what does it mean?

[Mr Khan]

richardhutnik said:

HappySqurriel said:

First off, I suspect that the success rate is far higher than 10%; after all, the people who enter into unpaid internships tend to have little/no experience and even if their internship doesn't become a job they're far more likely to be able to get a job after it is done, and few people who would be particularly bad at commissioned sales would apply for a position that was strictly commission based.

With that said, I don't see how any thing you have mentioned is any worse than people going to University. People spend tens of thousands of dollars and 4 (or more) years working towards building skills they hope will be valued, and there is virtually no direct opportunity for employment from these institutions; and the majority of students are being let down because they're developing skills that are worthless outside of University.

Well, this trend I am talking about looks like it is going to run Universities out of business also.  Once businesses shift to not relying on paper degrees, but other things, universities will have problems.  If you shift to where it is boom or bust, then you dont' have a middle class.  All that is left is for businesses to stop using them as filters for people, and they have big problems on their hands.  No one is going to borrow a ton of money just to buy a lottery ticket in hopes maybe they can land a middle class lifestyle.

As far as 10%, how many you think make good money on the internet?  I would say about 10% as being reasonable.  I speak of YouTube stars.  90% is just make no money place.  The thing about the Internet is that it scales.  You end up either doing real well, or end up not making it.  There isn't room for the middle in it at all.  That is because of the viral effect that leads to things breaking out.  And because of the scaling, a small team can end up doing a lot.  Once you hit it, you hit it, like the Epic Meal Time guys or Equals 3.

A college degree is still hugely important, and should not be underestimated. Try getting an internship somewhere important without being in college, or try getting a real job somewhere without some sort of higher education degree (needn't be college necessarily, but technical school, vocational something or other, but it has to be something). The only thing that this might be doing is forcing change on the traditional college experience to push for something more streamlined and cut down on things like the classics and philosophy, which have been on the downslide in universities anyway...