Denial is incredibly powerful. Most people can't really comprehend that there isn't enough water in that region (even though it should be obvious). We've lived in a time of plenty for so long the idea that something as fundamental as water could be limited just seems impossible.
You see this everywhere, and only tend to notice the denial when the problems don't impact you. Comments pointing out concerns that impact tech or everyone are frequently downvoted to oblivion here on HN. I saw a comment claiming that democracy in the US has been under threat, something no one who was observing the US from outside would deny, get downvoted to oblivion and decried as pure hyperbole.
We're all living in a constant and escalating state of cognitive dissonance, the world around is collapsing in multiple ways, but locally you aren't allowed to acknowledge this. The "this is fine meme" summarizes our current environment perfectly.