"...Researchers have shown a close relationship between certain group phenomena in our society and psychotic processes (Jaques, 1954). Basing their views on the work of Melanie Klein (who believed that personality development includes psychotic processes), these theorists suggest that understanding psychotic mechanisms can facilitate the understanding of group behavior. Bion (1954), for example, believes that the emotional life of the group is understandable only in terms of psychotic processes. Jaques (1954) emphasizes how individuals use institutions to help defend against primitive anxieties linked with psychotic phenomena. And Menzies-Lyth (1960, 1988) has come to understand social structures as a defense against primitive forms of anxiety, guilt, and doubt...
...Those scapegoated, according to Volkan (1985), serve as a receptacle for the projections of unacceptable impulses experienced by the group. Typically, scapegoats are vulnerable to attack because of some characteristic that makes them different from the main group. The projection of unwanted parts temporarily relieves anxiety while justifying this displaced aggression. And this act of projection binds members of the good group closer together..."
from:
The Psychotic Element in Everyday Group Thinking: Reflections on the Salem Witch Trials
http://www.radicalpsychology.org/vol7-1/semmel.html