Liberal Claus forces the elves to unionize, bails out the sled industry with town money, and stipulates that all children be given the same amount of toys, no matter if they've been naughty or nice.

He cites a "liberal clause" in the town's "Christmatution" that allows him to get away with all of this - along with trying to control "elf-made global warming" and forcing townsfolk to attend a church presided over by a "Reverend Blight."

In the end, one little girl defends the Christmastution and saves the town from Liberal Claus' takeover - by unplugging his teleprompter.