As the power of the state over the individual increases, most citizens come to see concepts of private property and individualism as more and more outdated and "unrealistic." Furthermore, a tendency noted in our discussion of Graph 1—namely, that economic advantage (in the mixed economy) is achieved more and more through state power—becomes increasingly evident to all. Consequently, the distinction between economic power and political power, which we outlined in pp. 5.2:6-10, becomes blurred in the minds of most citizens. This confusion in turn leads to widespread cynicism about wealth and profit, which are now associated in people's minds with exploitation, and further erodes private property concepts. In this cynical atmosphere, traits of independence, self-reliance, and risk-taking come to be regarded as faults rather than virtues.

As popular understanding of the principles of individualism and private property decline, citizens become ever more accepting of additional statist encroachments. This trend is reinforced by appeals of political authorities to "patriotism," "selfless sacrifice," and "social conscience," which (as already seen in pp. 5.4:61, 5.4:63) naturally accompany increasing state domination of the economy. Tendencies described on each page are highlighted in red on the graph.