|Demonizing in and of itself actually started with the Catholic religion. When catholicism was being spread they would demonize other regions, and any one they felt was against them.
Now some people, especially catholics will deny this, and say that the "heathens" that they were trying to save were devil worshipers. The whole idea of the united states is to allow people the freedom to be who they want as long as they follow our laws, this is not really allowed. Religions such as Paganism have been put back while ganglike religions such as Vampirism (actually an accepted religion last i knew) have been pushed.
The government is no better about demonizing than is any other religion. Things that they don't understand or don't like all fall under one category, Occult. Wicca, a decent amount of the Pagan religions, all are considered Occult, because people don't understand them.
Tell me, why is a religion that for thousands of years has amassed money, and stood as the symbol of sexist beliefs still pushed in this country, while a peaceful earth worshiping religion, not that different from the Native Americans own religion has been pushed aside and shunned? Is it just me or does this seem unfair?