Last year a girl in my social class didn't know what the holocaust was.
A couple of weeks ago I had to explain to a fellow graduate that the Curious Case of Timothy Button was not, in fact, based on a true story.
I know people who thought that Paranormal Activity was real, even after pointing clearly out the disclaimer that it was all fake as shit.
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Oh, I've also have plenty of people who have no idea what the holocaust was, or knew nothing about any of the camps, like I used Auschwitz in a conversation once and they had no fucking clue what I meant.
I also had a girl in a psych class in high school who refused to believe dinosaurs ever actually existed, because the Bible never mentioned them.
Also, I remember as a kid that all of my friends though WWF and WCW wrestling stuff was super real, actual fighting and the drama not scripted out. That was pretty hilarious, but it was one of those things that can be glossed over by the "they were young" explanation.
Best I've got that's not a generalized thing is that I once met a guy who thought the legends of King Arthur were totally true, including thinking that dragons used to be for real. I still hope that he was just yanking my chain, but he seemed legitimately shocked when I told him those stories were fictional.
I got a religious one...
Alright so I attend a Catholic oriented university so the majority of people here are of faith. Last night I encountered a guy who believed there was a second, female god in the Catholic religion. For those that don't know, there is only one God in the Catholic faith. There is the trinity but only one God. Google it if you don't know. But anyway, he came up to me and preached about why women give birth and that the sperm tail left inside after impregnation is a sign of female divination. This guy was something else.
The whole WWF/WCW crap is so fake it made me roll my eyes even as a kid.
The Arthurian legends are based on actual history, but are still just that, legends. I'm not going to get into the real possibility of dragons, however. Already wrote a 26 page research paper on that back in highschool. Just sayn', it's possible(if exaggerated in mythos).