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Public money should never bankroll a glossy campaign spot recycled from a presidential run, complete with hero shots and jabs at political enemies. Calling this campaign a public service announcement changes nothing. When watchdogs shrug and Congress looks away, the administration's funding abuses get bolder.
Governments have always used the airwaves to explain policy and rally the public, and nobody screamed propaganda when this happened under former presidents. A message about loving the country and rejecting communism names no candidate and asks for no vote, so this outrage is manufactured. Patriotism isn't partisan and spending to promote national values isn't a scandal.