The message of the song, like the theme of the show overall, says, "Hey, we're all a little bit racist. Let's just acknowledge that fault in ourselves and try to make the best of it." And the song is woven into a larger theme that becomes a lesson for the characters and a message of acceptance.
The production's brand of brutally honest comedy is also unerringly human (even for its furry characters). And the musical's assessment of this particular human error, racism (or monsterism, as it were), infuses a strain of realism into the technicolor puppeteering.
Overall, I think the show handled the idea of racism well. But I still cringed when Christmas Eve did, or tried to say, a few things ("sukka-sukka-sukka..."). It wasn't just because she was the Asian American character; it was because her character, while multi-dimensional, also carried the most developed stereotype-- she remained even more 'foreign' than the "monsters".
Have you seen the show or heard the song? What do you think?
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