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The argument boils down to "governments have attempted to do this in the past, therefore it's stupid for a for-profit company to attempt it." I am very far from being a libertarian (in the modern US-centric sense of the word), but this position seems ridiculous to me.
They also didn't invent that concept, though. Turing School used to have the same guarantee. They were required to drop it when they went for govt accreditation.
Turing School required upfront payment but guaranteed income, right? But Lambda School doesn't even get paid until you are employed at $50k/year or more.
Ah yes, I missed that difference. You're correct, their setup was you paid up front (there are scholarships if that's a problem), and could get a refund if you didn't find a job at (IIRC) 65k+ in 6 months
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Silicon Valley invents [institution that is floundering or worse, creating a market opportunity because people want a fix badly enough to pay out of pocket for it]" is a lazy attack in the best case and a dishonest attack in most cases.