Doesn't even mention the word 'scapegoat' which is a bit of a worry but seems to have a few useful things to say otherwise. Might have been better framed as a question also, eg. what are moral panics and why are they dangerous? but whatever.
http://docbonn.wordpress.com/2012/04/11/doc-bonn-explains-moral-panic-and-why-it-is-dangerous/Don't know about the distinction between 'elite engineered' and 'grassroots' panics. The Salem Witchhunts were sparked by a teenage girl blaming a slave for not bewitching her because she didn't want to have to be punished for the heinous crime of dancing in the forest, but she was still taking advantage of conditions created through a puritanical christianity which was the organising basis of the entire community. Seems like it's suggesting that moral panics aren't engineered either by or for elites or that they don't serve elite interests.
Entire book by this guy on moral panics and the Iraq War here:
http://muse.jhu.edu/books/9780813549965/Happy reading, you folk devils you.
Ben
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Those who don't learn from history are condemned to repeat it.
http://historicalunderbelly.wordpress.com/manufacturing-scapegoats-moral-disengagement-in-history/
If the end is not contained within the means, then the end becomes unattainable. - Walter Benjamin