There is a difference between a fifth columnist working in America for Hitler, Mussolini, or Stalin , and an American who would give his life for his… - John T. Flynn

In the presence of a government which had enlarged its power over the lives and the thoughts and opinions of citizens and which did not hesitate to use that power, the whole citizenry was intimidated. Editors, writers, commentators were intimidated. Men whose opinions did not conform to the reigning philosophy were driven from the air, from magazines and newspapers. While American citizens who were moved by a deep and unselfish devotion to the ideals of this Republic—however wrong-headed that may be in the light of the new modes of ‘freedom’—were forced into silence, the most blatant and disruptive revolutionary lovers of the systems of both fascism and Communism and that illegitimate offspring of both—Red fascism—were lording it over our minds.

Fascism will come at the hands of perfectly authentic Americans, as violently against Hitler and Mussolini as the next one, but who are convinced that the present economic system is washed up and that the present political system in America has outlived its usefulness and who wish to commit this country to the rule of the bureaucratic state; interfering in the affairs of the states and cities; taking part in the management of industry and finance and agriculture; assuming the role of great national banker and investor, borrowing billions every year and spending them on all sorts of projects through which such a government can paralyze opposition and command public support; marshaling great armies and navies at crushing costs to support the industry of war and preparation for war which will become our greatest industry; and adding to all this the most romantic adventures in global planning, regeneration, and domination all to be done under the authority of a powerfully centralized government in which the executive will hold in effect all the powers with Congress reduced to the role of a debating society. There is your fascist. And the sooner America realizes this dreadful fact the sooner it will arm itself to make an end of American fascism masquerading under the guise of the champion of democracy.

The German states held investments in numerous enterprises— railroads, power companies, municipal transport, mines, forests, and some industrial enterprises. This has led to the impression that the empire had diluted its capitalism with a good deal of socialism. The empire had but little of these enterprises. They were held by the several states. But even here it was not socialism but rather state capitalism, if such a term is permissible. The German states made a point of operating their enterprises for profit as a source of state revenue.