This reminds me of a concept in anatomy. Some tubes in the body like the intestines and the vagina are called virtual spaces. They are only open if something is in them. Otherwise their walls lie next to each other closing the space. As soon as they begin to be filled the potential space opens up and assumes its open position.
Capitalist governments are the same.
As long as everyone is obediently reified, there is no need for fascism. It would only betray the reality of the situation. When enough people start to openly disobey, the state opens up its fascist options. This is what I call virtual fascism. Cristoff did everything in his power to keep Truman obedient.