I found this link:

http://zipcon.net/~highroad/folkscare.html

I first heard the term "folk scare" in recent years but I remember "folk boom" or "golden era" starting in the late 1960's to describe the early/mid sixties folk period.

I guess "folk scare" implies some mockery of those who thought of activist acoustic music as a major force in turning the tide on civil rights, the bomb, and Vietnam.

Likely, most of the listening public was instead influenced (lulled) by the "folk salve" of the Brothers Four, Serendipity Singers and other Might Wind style music.