This looks like one of those grotesque cariactures you see in MAD magazine. Or rather, the ones you see people make on the beach. I don't know if this was intentional, but it looks a lot like it has pedophiliac overtones. It's like the guy is trying to molest the children because of how ugly he looks. I think it's just more of a failed clown like guy at a birthday party. The funniest part of the picture is probably his sock puppet.
I like how his head just seems to be taking up most of his body. He looks truly monstrous in this. There's just so much great detail in everything here. It kind of looks like a political cartoon that would be in the "New Yorker" or something. Hard to be happy with a giant man gleering down at you.