A free society is not just a place that lacks oppressive laws. It is a place that is made free by people taking freedom seriously. They not only value freedom, they want to live in a free society, and they want to do, and to speak up for, what is necessary to keep their society free. Such as defending freedom for others, not only themselves.
In regard to the events we reported here, where someone was harassed and threatened for wearing an Israeli-flag cape in Oxford (see also here), some have said that being threatened by one individual is not a failure of the town square test: one person is not representative. But the town square test is not about whether a society has any criminals. It is about whether citizens take steps to create a free atmosphere. It is true that the police can't be everywhere, so if you aren't necessarily safe to express your political opinion in dark alleys, at night, that is no failure of the town square test. However, the point of the test is that you are in the town square. It's daylight, people are there. Are you now afraid to state your political opinions? If you are, the people around you are not reliable in their commitment to freedom. They can't be counted on to help you be free, should you need that help. In a country that properly passes the test, you will feel safe despite the existence of some criminals, because the other people in the square will stand up for you even if they disagree with your view.
