Lyric discussion by Helsmith 

Cover art for Propaganda lyrics by Theatre of Hate

To me, this song is about the tendency of people to rationalise growing authoritarianism by dismissing it as empty rhetoric. Even when the state dials up the hate, they don't see (or refuse to see) that the blatant threat in what to them is 'only propaganda' is setting up the boot that's soon to fall on their 'wonderful lives'. They believe they're above the propaganda but don't realise they're next in line for oppression.

[Edit: Added further thoughts]

Negative
Subjective
Fear
Authoritarianism
Rationalization
Propaganda
Denial
Threat