Sounds more like forced labor to me. If this money was returned to those taxpayers, there would be more resources for the private Chilean economy to create jobs.

This is command economics with a Web 2.0 veneer.

The false assumption you're making is that an average Chilean can generate better ROI than a bunch of selected, high-tech startups.

If that were true, Paul Graham would be giving out handred dollar bills to random people instead of investing in startups that he personally vetted.

He's saying the market is better than allocating money than government.

If the politicians and bureaucrats are so good at investing, why don't they do it privately instead of working for the government?

You are assuming that government is better at allocating resources than the market. If the government is better at investing than private capital, why even have a market economy? Why not have a command economy like in the Soviet Union?

The average Chilean would spend his money as he pleased, which would go to businesses that are satisfying a real demand, rather than something a bureaucrat guesses might fulfill a demand.

Taxation is not the same thing as "forced labor" or "command economics".

~40 people work at Airbnb. And a ton of others make money renting their place, or save money when traveling. Massive, massive value creation there in addition to the jobs.

Airbnb is a great company (I'm a user and like it a lot) but not a typical web startup. Take all YC startups and divide by number of employees, what's the average?

New companies create 80% of new jobs. We need more jobs. So, how do we create new companies?