Patio11's soundbite as often shared puts the cart before the horse.
He says that the "optimal amount of fraud is non-zero" as if allowing some fraud is necessary for society to function. But what he actually means is that since not all fraud is prosecuted and prevented, allowing some fraud is just the price we pay for actually getting things done.
Take the analogy of food processing. It is accepted that some small percentage of ground coffee will be insect or rodent remains and their feces. It's not like making ground coffee requires animal remains and feces.
I read Patio11's soundbite to mean that ground coffee requires animal remains and feces.