I figured out how to fix it! I looked up the name of that file setuptools-0.6c11-py2.7.egg
and I found a python page on it that says
NOTE: Regardless of what sort of Python you're using, if you've previously installed older versions of setuptools, please delete all setuptools*.egg and setuptools.pth files from your system's site-packages directory (and any other sys.path directories) FIRST.
So I deleted setuptools-0.6c11-py2.7.egg
and setuptools.pth
in /Library/Python/2.7/site-packages/
then I went into terminal and typed in pip install --upgrade setuptools
and it worked!