(at The Humble Libertarian, via Instapundit)
Update: As usual, there's a bit more of a context to these remarks than the YouTube clip lets on. Ricard Fernandez at Belmont Club has the particulars. Read it all of course, but this part is important:
"Although Reich is liberal he is also incorrigibly intelligent and his remarks were framed as a speech by a hypothetical candidate, who for perverse reasons, could only tell the truth. His main point was that the truth was untellable. And although his politics are left of center, his hypothetical unspeakable speech slaughtered every sacred cow the Berkeley audience held dear. So not only did Reich say the words above, but he said many other things besides, which I’ve marked in blue in my new laundry list below."