I'd like to put this in relation to the recently featured Cost for Irrationality post. I think this bias is a prime example of a bias capable of cripling a society.

I totally agree that this Argument from Crisis is (ab)used a lot. And I'm inclined to say that its massive use (obviously because it is so effective, even more so with our mass-media) has a profund effect on a lot of areas. I think it causes e.g. overprotection of children - making them more dependent and less autonomous with each generation.

I think the Argument from Crisis effect is able to persist across multiple generations precisely because it is not founded in facts but colored perception which may well be applicable over time. In fact it may even worsen because a perceived effect appears to continue. Except if it is explicitly countered, for which I see little general evidence though there may be specific examples. In the end you probably can't argue for all time that some evil continues to increase when in fact it by now has almost been eradicated. Or can you?