Certainly. The point he was making was that leftist types throw around these labels to everyone to the point that they are losing their power. He was not telling racists to be proud of being racist as your quote suggested, rather he was advising the audience not to allow these smears to affect them since they tend to toss them at everyone they disagree with. I'm not saying I agree with him by the way and I'm no fan of Bannon but that was clearly the intent behind that quote.