Kaus is a very good writer.
I agree with him that our overarching political goal should be the opportunity for everyone to have a dignified, fulfilling life (as opposed to "income equality" or "wealth equality"). I also agree with him that, in a society with a capacious and well functioning public sphere, it's perfectly possible to live a dignified, fulfilling life without a lot of money. That's precisely what I did as a child in a lower-middle-class family: I took advantage of public libraries, public transportation, public parks, and other institutions of the social sphere to learn about the world. (I still take advantage of all of those things, even though I have a lot more money now.) We need to ensure that all American citizens continue to have those opportunities.
The problem with his argument is that achieving this goal will still come down to money. I don't share his optimism that American voters can be persuaded that we would all be better off if many billions of dollars of tax money were spent to ensure a capacious and well functioning public sphere. We don't even seem to be able to convince them that we'd all be better off if we had a well functioning, public, universal health-care system -- even though nothing could be more obvious, in my humble opinion. I hope I'm wrong.