They are definitely fools. The definition of insanity is when you do the same thing over and over and expect different results....If the problem was that they just don't care, then they could eventually be motivated to see reality--but that is not the case--they just don't see it..
Although this is often said it simply is not true. That may be a symptom but it is not the definition.
insanity
noun
1 insanity runs in her family - mental illness, madness, dementia; lunacy, instability; mania, psychosis; informal craziness.
2 it would be insanity to take this loan - folly, foolishness, madness, idiocy, stupidity, lunacy, silliness; informal craziness.