What is the Role of Propaganda in a Democracy?

From the AP as reported by emptywheel

DOD Spends More on Domestic PsyOps Than On Foreign PsyOps
The biggest chunk of funds — about $1.6 billion — goes into recruitment and advertising. Another $547 million goes into public affairs, which reaches American audiences. And about $489 million more goes into what is known as psychological operations, which targets foreign audiences.

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Recruitment and advertising are the only two areas where Congress has authorized the military to influence the American public. Far more controversial is public affairs, because of the prohibition on propaganda to the American public.

"It's not up to the Pentagon to sell policy to the American people," says Rep. Paul Hodes, D-N.H., who sponsored legislation in Congress last year reinforcing the ban.

Spending on public affairs has more than doubled since 2003. Robert Hastings, acting secretary of defense, says the growth reflects changes in the information market, along with the fact that the U.S. is now fighting two wars.

"The role of public affairs is to provide you the information so that you can make an informed decision yourself," Hastings says. "There is no place for spin at the Department of Defense."

But on Dec. 12, the Pentagon's inspector general released an audit finding that the public affairs office may have crossed the line into propaganda. The audit found the Department of Defense "may appear to merge inappropriately" its public affairs with operations that try to influence audiences abroad. It also found that while only 89 positions were authorized for public affairs, 126 government employees and 31 contractors worked there.

Update: The CEO of the Associated Press is claiming the DOD made them do it.