That's not what he said. What he said was that large-scale government solutions to the problem that are conceived in panic could cause more harm than good and be used for political reasons rather than a practical one.
Mass inoculation, as he mentioned from the 70s, killed and harmed more people than the illness itself.
There's nothing retarded, or particularly ideological or extreme about what he's saying. He's just raising some good practical points about the way government can seize on a crisis and simply make the situation worse. That's not to say there's no place for government in a crisis, but a crisis in progress is also not meant to be an invitation for government to place itself everywhere.