Maybe the more correct statement would be that people believe what their short-term interest dictate. When it comes down to taxes we are all for the free market, but in worse times or when we need government protection of some sort we are all becoming pro-government.

That's why I think that an ultra-liberal state where people are allowed to demand whatever they want and with no real independant leadership is doomed in the long run - it will either fail and/or will go to the other extreme.

The ultra-conservative state is a feudal plutocracy.  Think Louis XVI (followed by the terror) or that cute German guy with the little moustache (followed by the Red Army).
Yep. Both extremes are poor choices.
"Moderation in all things" is good advice, even 2500 years later.