"What's even more mind blowing is that the people creating the news don't really seem to notice that this is what they're creating."
I'd say the exact opposite actually. This has continued for so long because of how easy it is to manipulate the masses. The average person does not question the validity of the information they receive via television, internet, word of mouth, etc. If this holds true, why not create narratives that keep these people in a perpetual state of fear? When people are afraid, they're more apt to listen to authority even more so. Rinse & Repeat.
This is me simply thinking on their wavelength of course.