The bolded passage addresses the fundamental and apparently unbridgeable difference between liberals and conservatives. Conservatives take a sober and realistic (not pessimistic!) view of the world and the people in it. They are reality-based, and put no faith in utopian schemes. Like good Aristotelians, they take the actualities of the present and the past as a reliable guide to what is possible, rather than the future-oriented fabrications of a high-flying reason cut loose from experience.
Just a few utopian, non-reality based schemes of conservatives:
Elimination of federal funds for embryonic stem cell research
Global warming denialism
Liberals and leftists, by contrast, joined by many anarchists and libertarians, labor under the misapprehension that human beings are inherently good, and would achieve an optimal condition either through massive statist intervention, or the elimination of the state altogether. Strange bedfellows these, but lying together in the bed of a common illusion.
Many liberals think that most humans are inherently responsive to their environment, and while there will always be exceptions to that, the best way to reduce negative behavior is to remove the inducements to such behavior.
Oh, and his great example of hypocrisy? Noam Chomsky has the nerve take advantage fop the tax laws in the same was other rich people do! Conservatives don't bother to explain why this is hypocritical, because such explanations would be thoroughly laughable.