US was not modeled after the European Union. Rather, the model intended for the US is what the EU ended up with.
Yes, fascism is as you describe, and if one looks at the behavior of any extremist group - right or left - the behavior is usually fascist. The Soviets claimed to be liberating the common person, but Stalin decided that the best way to do that was to silence anyone who disagreed, by killing millions. That was their version of cancel culture.
I personally don't see the US Constitutional founding fathers as perfect; and there were great debates about whether the US national government should be storng or weak (the latter opinion, Championed by Jefferson, won). But I think that a federal approach is better, because government does not scale well.
I personally am for a strong social safety net - but not at the US national level. I think that anything we do at a national level is a debacle.
We sometimes forget that our economic model is not defined by the US Constitution. We are capitalist mostly because of corporate law. The separation of shareholders (passive investors who provide capital) and workers (uninvested, but doing the labor) is a result of the corporate shareholder model. There are alternatives, such as coops.
People think that there is a dichotomy between captialism and socialism. There is not. There are other ways. Both capitalism and socialism are terrible at scale. We need smarter economic structures.