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Here's your flaw, it's a GOVERNMENT lab, not a private lab
Interns are known to be really underpaid, but have great opportunity for advancement with the company. If this is the kind of work you want to do then it will be great on your resume. Sucks, but hopefully you will go much farther.
I'm pretty sure he's pulling your leg.
Its a government job. What the hell do you expect?
Keywords
So what? A carnie is never going to go anywhere, you've got experience that will get you a better job and you'll end up with more in the end than a carnie ever could.
be thankful that you even got paid for an internship!