Earlier quoted context omitted.
I think PG's argument is that having your own projects is joyful and is more akin to play than work. Not everyone wants to do this and being idle in that case is great as well. I get extremely bored If I'm idle for too long.
Yes, but also no. PG is not just saying that this is good for people, but also should be sought by their employers. The former is fine. Go find a thing that brings you joy and pay. The problem is when employers seek people who find joy in their work so they can abuse them by cutting other benefits.
Not saying that Paul Graham is or is not a ruthless capitalist who is trying to exploit people no matter what.
But I think Paul Graham is referring to the first thing in the context of this article.