One should expect the pole opposing that of tyranny to be the pole of freedom; for it was doubtless their love of freedom which made Janowitz and Mayer disclose the nature of tyranny. Now this counterpole is the rallying-point of elements pertaining to the fair — the fair with its rows of tents, its confused crowds besieging them, and its diversity of thrilling amusements. Here Francis and Alan happily join the swarm of onlookers; here, on the scene of his triumphs, Dr. Caligari is finally trapped. In their attempts to define the character of a fair, literary sources repeatedly evoke the memory of Babel and Babylon alike. A seventeenth century pamphlet describes the noise typical of a fair as “such a distracted noise that you would think Babel not comparable to it?” and, almost two hundred years later, a young English poet feels enthusiastic about “that Babylon of booths — the Fair.”
The manner in which such Biblical images insert themselves unmistakably characterizes the fair as an enclave of anarchy in the sphere of entertainment. This accounts for its eternal attractiveness. People of all classes and ages enjoy losing themselves in a wilderness of glaring colors and shrill sounds, which is populated with monsters and abounding in bodily sensations — from violent shocks to tastes of incredible sweetness. For adults it is a regression into childhood days, in which games and serious affairs are identical, real and imagined things mingle, and anarchical desires aimlessly test infinite possibilities. By means of this regression the adult escapes a civilization which tends to overgrow and starve out the chaos of instincts — escapes it to restore that chaos upon which civilization nevertheless rests. The fair is not freedom, but anarchy entailing chaos.
Significantly, most fair scenes in CALIGARI open with a small irisin exhibiting an organ-grinder whose arm constantly rotates, and, behind him, the top of a merry-go-round which never ceases its circular  movement. The circle here becomes a symbol of chaos. While freedom resembles a river, chaos resembles a whirlpool. Forgetful of self, one may plunge into chaos; one cannot move on in it.
That the two authors selected a fair with its liberties as contrast to the oppressions of Caligari betrays the flaw in their revolutionary aspirations. Much as they longed for freedom, they were apparently incapable of imagining its contours. There is something Bohemian in their conception; it seems the product of naive idealism rather than true insight. But it might be said that the fair faithfully reflected the chaotic condition of postwar Germany.
Whether intentionally or not, CALIGARI exposes the soul wavering between tyranny and chaos, and facing a desperate situation: any escape from tyranny seems to throw it into a state of utter confusion. Quite logically, the film spreads an all-pervading atmosphere of horror. Like the Nazi world, that of CALIGARI overflows with sinister portents, acts of terror and outbursts of panic. The equation of horror and hopelessness comes to a climax in the final episode which pretends to re-establish normal life. Except for the ambiguous figure of the director and the shadowy members of his staff, normality realizes itself through the crowd of insane moving in their bizarre surroundings. The normal as a madhouse: frustration could not be pictured more finally. And in this film, as well as in HOMUNCULUS, is unleashed a strong sadism and an appetite for destruction. The reappearance of these traits on the screen once more testifies to their prominence in the German collective soul.