“HyperNormalisation” is a word coined by Alexei Yurchak, a Russian anthropologist, who wrote about what it was like to live in the last years of the Soviet Union.
He described the phenomenon he observed in the last years whereby everyone, from top to the bottom, knew things weren't working and in a variety of respects, e.g. corruption, yet nobody could imagine an alternative vision. So, despite everyone knowing things were broken, people, politicians and institutions alike just plodded on with the status quo, accepting everything as normal.
The sense of disconnect Americans are experiencing recently is likewise hypernormalisation, and, despite the evidence of their own eyes, they continue with the collective pretence of having a functioning society.
Adam Curtis, the British filmmaker, made an excellent, albeit long documentary about this phenomenon
https://www.youtube.com/watch?v=to72IJzQT5k
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