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All social theory can be reduced to two categories: those that conceive of society as the result of peace, and those for which the indispensable ingredient is violence. This is the fundamental distinction between liberalism and fascism, a point I discuss further in a book I released earlier this year called Fascism vs. Capitalism.

There is some confusion surrounding terms here. When Ludwig von Mises published his book Liberalism in English translation, he changed the title to The Free and Prosperous Commonwealth. He did so because by the latter half of the twentieth century, the word “liberal” no longer carried the meaning it once had. It had come to mean centralization, the welfare state, and a substantial government presence in economic and social life.

The liberalism I have in mind, of course, is not the modern liberalism of Barack Obama and Hillary Clinton, but the classical liberalism of Thomas Jefferson and Frédéric Bastiat. Classical liberalism, by contrast, believed in free markets, free trade, toleration, and civil liberties.

It represented a movement toward a theory of society in which human cooperation emerged spontaneously and without coercion, by means of the natural processes of the market economy. It recognized that society seemed to manage itself without the involvement of extraneous forces like kings, aristocracies, or parliaments, and that the intervention of those forces was more likely aimed at the enrichment of a favored group or of the state itself than of at the well-being of society at large.

The price system, a spontaneous product of the free-market economy, helped entrepreneurs arrange the factors of production in such a way as to produce those outputs most highly valued by society, and to produce them in a way that was least costly in terms of opportunities foregone. Individuals specialized in those areas in which they had the greatest skill or knowledge, and the resulting division of labor meant a vastly greater output of consumer goods for everyone to enjoy. None of this required the intervention of the state.

For the classical liberal, the state was almost an afterthought. Some would have it provide a few basic services, while others conceived of it as nothing more than a night watchman. Beginning with Gustave de Molinari, the classical-liberal tradition even groped toward the possibility that the state was a dangerous, parasitical, and ultimately unnecessary monopoly.

And, of course, it was against a backdrop of peace that the classical liberal described the progress of mankind.

Fascists looked at society and the state quite differently. The prosaic bourgeois virtues of commerce, of producing, trading, and earning profit, are viewed with contempt next to the code of the warrior, which is what the fascist truly respects. Greatness comes not through the ordinary pursuits of the market or the obedience to the duties of one’s state in life, but through struggle.

It is Benito Mussolini’s famous remark — “Everything for the state, nothing outside the state, nothing above the state” — that truly sums up the essence of fascism. The good of the Nation, as defined by the fascist leader, surpasses all other concerns and allegiances. The fascist speaks of the Nation with a religious reverence. An Italian fascist youth movement in the 1920s composed the following creed:

I believe in Rome the Eternal, the mother of my country, and in Italy her eldest Daughter, who was born in her virginal bosom by the grace of God; who suffered through the barbarian invasions, was crucified and buried; who descended to the grave and was raised from the dead in the nineteenth century; who ascended into Heaven in her glory in 1918 and 1922; who is seated on the right hand of her mother Rome; and who for this reason shall come to judge the living and the dead. I believe in the genius of Mussolini, in our Holy Father Fascism, in the communion of its martyrs, in the conversion of Italians, and in the resurrection of the Empire.

This devotion to the Nation is concentrated in allegiance to the charismatic leader. The untrammeled exercise of the leader’s will is a central ingredient in the realization of the Nation’s destiny. Moreover, the leader’s will must trump the array of activities that comprise the free market. The various companies, professions, unions, and government must work together with a conscious plan to ensure the best outcome for the Nation. This is why it is so preposterous to hear opponents of the market economy describe libertarians as “fascists.” No one could be more anti-fascist than a libertarian.

Political centralization was also central to fascism, for if the Nation is the embodiment of the people, and if it is through the Nation that every individual realizes his destiny, we cannot tolerate resistance by lesser jurisdictions within the Nation.

To say that there are fascist trends and features in the United States of today is not to say that this country is just like interwar Italy or Germany. There are some features of fascism as traditionally understood that can be found only faintly in American society today, and others than can be found not at all.

But it would be foolish to pretend that America is the very opposite of the fascist dystopias. Whether it’s the emphasis on centralization, the glorification of the police and the military, the yearning for a “third way” between capitalism and socialism, the elevation of “public service” above the services we freely provide one another on the market, the creepy and incessant references to “my president” or “our president,” or the depiction of the state as a quasi-divine instrument, the commonalities are neither trivial nor few.

Americans no doubt recoil from or laugh at that passage from the Italian fascists I shared with you a few moments ago. But few Americans are in a position to render such a judgment. Most have absorbed the idea that their government, far from a merely utilitarian contrivance established to provide them with some basic services, as many early Americans doubtless conceived of it, is a redemptive force in the world.

John Winthrop appropriated a biblical image of the church when he spoke of his settlement of Puritans as resembling a “city on a hill.” By the time Ronald Reagan made that phrase a rhetorical commonplace in American politics, it had been fully secularized. Not the church but the American state would transform mankind as God’s instrument.

Americans, even (or perhaps especially) American Christians, are for that reason not scandalized at politicians’ appropriation of religious language to describe their government. It bothers them not at all to learn that the iconic Abraham Lincoln said “the gates of hell shall not prevail against” American government ideals, or that when George W. Bush said “the light shined in darkness and the darkness did not overcome it,” by “light” he meant American government ideals.

In US history, presidents who avoided war, or who viewed the presidential office modestly and without messianic overtones, are neglected or even denounced by our official historians. You can guess at the views and activities of the presidents favored by the opinion molders. “Beware any politician who is ‘beloved,’” historian Ralph Raico once warned.

The cult of personality surrounding the US president has only grown over the past century, culminating in the creepy videos of schoolchildren pledging allegiance to Barack Obama and the YouTube videos of Hollywood actors promising their eternal loyalty. But some of those who ridiculed these ridiculous displays had themselves been part of the cult of George W. Bush. During the Bush years, Christian neocons made a video about the president set to the tune of Johnny Cash’s classic “When the Man Comes Around.” That song had been written about Jesus Christ. Here are some of the words they set to a video about George W. Bush:

There’s a man goin’ ‘round takin’ names. An’ he decides who to free and who to blame. Everybody won’t be treated all the same. There’ll be a golden ladder reaching down. When the man comes around. Till Armageddon, no Shalam, no Shalom. Then the father hen will call his chickens home. The wise men will bow down before the throne. And at his feet they’ll cast their golden crown. When the man comes around.

That man, remember, was George W. Bush.

Americans are taught that they owe their freedoms to their government’s military. Whether it’s a country music concert, a sporting event, or even a restaurant chain, Americans are subjected to a ceaseless stream of reminders of what they allegedly owe to this particular class of government employees. (Let’s not forget the popular bumper sticker: “Only two defining forces have ever died for you: Jesus the Christ and the American soldier.”) How exactly their freedoms were threatened in any of the military conflicts in question is one of those impertinent questions one does not ask in polite society.

The propaganda has worked, to some extent at least. When Edward Snowden revealed the extent to which their government was spying on and lying to them, many listeners of right-wing radio demanded not that these activities cease, but that the leaker himself be silenced. The man who had embarrassed their rulers should be tried for treason and executed. I have heard this phenomenon described as a case of society-wide Stockholm Syndrome, and I don’t think that’s far from the mark.

If some of the superstitions of fascism have made their way into American life, it could be because both fascism and whatever it is that America has become share a superstition in common — namely, the state itself. The state has been cloaked in all manner of flattering but obfuscating rhetoric. The state looks after the general welfare, provides economic stability, protects us from the bad guys, prevents inequality, and binds us together in a common cause greater than ourselves.

It’s time we viewed the state for what it really is: a mechanism by which rulers enrich themselves at the expense of the ruled. Everything else is a smokescreen.

Editor’s Note: The following is a selection from a speech by Mises Institute Founder and CEO Llewellyn H. Rockwell, Jr. at the Southwest Regional Mises Circle in Houston, “The Police State: Know It When You See It,” on January 18, 2014.