Most liberal democracies operate this way in fact. They offer their own citizens a modicrum of freedom - a mix of the substantive and performative - but bolster their own economic and political might through imperialism abroad. The only difference between the Europeans and Americans in this regard is the former rely mostly on "soft" power and economic represssion while the USA have a more overtly militant approach.
This does not mean that liberal democracies are not an improvement over the monarchies and fuedal states that preceeded them but lets not pretend that they are not still pretty terrible to anybody that's not either wealthy themselves or the most profitable group for the representatives currently in power to appeal to.