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Glad you asked, Eugine:
Of course, society normally finds it easy to recognize and ostracize such blatantly dishonest Nazism. It doesn't create any actual confusion - unless people have gone out of their way to weaken society's immune system, eg by deliberately signalling Nazism when the reality is more obscure.
What do you mean by "normally" and can you find any examples of society that actually operated like you describe? Keep in mind the word "Nazi" was already being applied to anything and everything the speaker disliked as early as 1942.