Option 1, but like Gabu, I doubt that the average citizen doesn't care about the gross infringement of civil liberties, or the rampaging deficit.
It's not that they don't care about it when it's brought to their attention; it's that it doesn't directly affect them and is not present in front of them, so they don't think about it. It's kind of like that Zen thing about sound: if someone is tortured in Guantánamo Bay, and it's not brought to anyone's attention, will the people consider the possibility that it's going on? I doubt it.
Similarly, if there's a rampaging deficit, but a person is not provided with any connection between that and something wrong in his or her own life, will the person make the connection on his or her own? Not unless they're educated on the effect of a deficit.