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While I suppose there have been a few parallels to this in history, I'm interested in seeing what lengths paranoia, fear, etc. can go in a society. For this challenge, I'm looking for a long-lasting culture of fear to be constructed in a nation, preferably Western, but NOT the Soviet Union or the United States.
I'm leaving what the nation is afraid of to the poster, but it must include things like:
Paranoia or hysteria reinforced by most or all media outlets
Moral panic
Leaders that pander to the society's sense of panic
A concerted effort to reinforce the fear, for example the state-sanctioned building of bomb shelters
What would the ramifications be of a Western nation in such a state? How would people "on the outside" feel about it?