Propaganda is popular news, in the same sense that romance novels and action films are popular art. By “popular” I mean they function comfortably within the worldview of the masses, and serve to reinforce commonly held beliefs, values, practices, assumptions, blindnesses and taboos.
We don’t realize it yet, but a lot of what today’s smart people think is serious literature is a combination of propaganda and popular art, basically popular fables, complete with a tidy moral at the end.