Recent Facebook Post About the Current State of People's "Reality"

I know there are serious health issues in the world, but whether it falls under Cognitive Dissonance, Dunning-Kruger, or some other sort of disassociative disorder, I really do worry that the reality of people's world and the world they've created. Whether it be for themselves or for others, the divide between fantasy and reality, even when used as a defense mechanism is too wide. For someone to witness another's action and within a short span of time forget they performed such actions is one thing, but to literally believe that they performed those actions themselves is mind-boggling. How does one rationalize or convince themselves of completing tasks they never even considered attempting? How does one do something each and every day, sometimes multiple times a day, and convince themselves and others that they took no part in it?

 We could look at our political structure and the news coverage of it, and base it on this, but how does anyone view a recording of someone saying something then deny it was ever said. Take it one step further: How does the person who uttered those words deny it when reviewing it? I've dealt with this on a smaller scale at work lately. Where people say or something (or don't do something) and they immediately convince themselves it wasn't them or take credit for an action they just witnessed, while never even being present to assist. I'd like to think, despite my often described insane view of the world, is merely viewed as insane because my belief system is different from the norm and not my belief function. Or is this behavior now the norm and years, decades, even centuries of psychology into emotional behavior needs to be "fixed." How can we coexist with those whose reality is our fantasy and vice versa?