No, it really is a waste of time. I'd much rather have an actual job than do something that I don't care about, and will never do again in my life.
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Like another poster said though, it could be some work experience for those that haven't had a job yet. Most know that after you get out of High School, work experience isn't something that most have, and it's very crucial to get hired somewhere.
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It gets you through graduation and gets added to your transcripts, which Colleges definitely like. That should be reason enough. If you really get motivated and have a good record with dozens of hours of Community Service, Colleges will really want you at their schools.
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I already do have a lot of community service hours, but that's not the problem. The problem is that it is useless. I will never volunteer at the fucking library, or to clean up the beach, again in my life. I'll only do that kind of hard labor for a stranger if I'm getting paid for it. Why should it be any different in high school?
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It could then also improve the schools themselves because they're loaning out your time to corporations and businesses, helping to fund for more supplies and such. Helping others at your schools is also a benefit to it.
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We wouldn't want it to go that way though. There's no way there wouldn't be enough work for everyone, and there's certainly plenty of areas to delegate out, the competition could also be balanced well enough that prizes for dedication could be used too.