While a lot of people will disagree with this, the current difference in social and living conditions between the US and Europe is very narrow. It's certainly narrow enough for that sort of propaganda to work on a certain portion of the populace, even the portion that suffers from our poor distribution of wealth in the US vs. Europe.

If we come to a place where American cities are in full decline, unemployment is rampant, jobs are unavailable, and opportunity is gone (I'm thinking 1930's depression), but the same is not true of Europe - that sort of reality can't be completely hidden. Unless the media comes under full control of the government, such an event WILL be covered, as advertisers have no values, and anything that stokes negative emotions gets people to watch TV.

Not wanting to start a pie fight here, but I don't like the hyperbole contained in your comment. Deep seated fear comes with any superiority complex. When the US was in recession in the early 90's and the auto industry was on its death bed while Japan was conquering the capitalist world, there was deep regret and fear of Japanese prowess and American inferiority. Let's add a bit of nuance.

you are the media you consume.