At first glance it appears to be. But This quote needs to be put in its larger context to be understood. He was citing the reasons that politicians often use to make their assaults on private property and for levying high-taxes, both of which he opposed.
In England in 1776 it was true that for every rich man there were 500 poor. As for the rest of the quote, it is merely an accurate observation of human nature, which Smith said had to be accounted for in economics and the policies governing them. By no means did he say these were justifications for any kind of socialist policy, though I can see why you might have thought that.