Final answer:
The term that encapsulates the sense of historical discontinuity, alienation, and despair is 'alienation'. It is reflected in Modernist art, Freudian psychology, the Great Depression, and in the aftermath of World War I. Alienation signifies a profound societal shift and cultural anxiety that emerged from disrupted connections to community, work, and self.
Step-by-step explanation:
The term that best fits the definition implying a historical discontinuity, a sense of alienation, and despair may be understood through the lens of alienation. This sense of separation from aspects of humanity and societal norms is deeply embedded in Modernist art, Freudian psychology, and the social impact of economic events such as the Great Depression.
Alienation can also describe the profound displacement and skepticism following events like World War I, which left societies fractured and in doubt of future progress. The erosion of community values, increased isolation, and the disruption of connection to one's labor and sense of self further highlight the facets of alienation within the evolution of modern society.
Additionally, the emergence of destructive political philosophies like fascism and Nazism can be seen as extreme manifestations of societal despair and alienation. Ultimately, alienation pervades numerous areas of societal development, signaling a shift away from previous norms and towards a future that is often met with cultural anxiety and a reevaluation of identity both on an individual and societal level.