Conspiracy depicted a phenomenon of human relations that I've witnessed in a frighteningly similar context in the 50's and 60's, in the Southern U.S. -- the tendency to go with the flow when the Crazies are spouting their racist, hate-filled venom.
There are few things more difficult to do than stand up to what at least seems to be the dominant, almost-universally held viewpoint of one's peers.
The film hinted, several times, at the fact that there were people -- even in that room, in positions of "leadership" -- who knew that what was being said and done was incredibly wrong-headed and evil. But they were cowed by the world they found themselves living in.
That's the way it happens. It not only can happen here, it already has.