I saw the movie at the time, and took it as political commentary/criticism. I thought that anyone with half a brain skeptical or critical view saw it that way as well, and everyone else probably just didn't get it.

I have been amazed to watch this same script play out over and over again and see the US populace continually let "authorities" form their world view instead of researching the facts for themselves and coming to their own questions and conclusions.

I would agree that it does look like things are disclosed to the public in a way that they acknowledge it and accept it but don't necessarily realize the ramifications or address that it may go right against their values or best interests. Perhaps consent is implied by knowing about it and doing nothing.

I thought Wag the Dog was a movie to illustrate how political operatives operated at the time.