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|“||Punishment is good.||„|
|~ Mother Superior|
When young Billy Chapman is sent to his room as punishment for drawing violent drawings in class, Sister Margret, one of the nuns under Mother Superior's authority, tries to defend Billy, saying that his behavior is a result of his parents murder around Christmas time by a man dressed as Santa Clause. Mother Superior ridicules her, and says that she herself will take care of Billy's problem behavior
Later, Sister Margret takes pity on Billy, and allows him to come out of his room to play outside. Billy wanders off and sees two teenagers having sex. Mother Superior finds them a short time later and beats the couple. She then tells Billy that punishment for naughty behavior is absolute, wholesome, and good. Despite Sister Margret trying to take the blame for Billy leaving his room, Mother Superior beats Billy, and tells him to go to bed.
That night, Billy has a nightmare and wakes up screaming and runs out of bed. Mother Superior ties him in bed so that he can't get up again.
The next morning is Christmas Day. When Billy is told to sit on Santa Clause's lap to thank him for his gifts, Billy get's scared and punches him in the face.
1984Billy, now an adult, gets a job at a toy store where he has to dress up as Santa. He then thinks he is Santa, and with Mother Superior's teachings of punishment is good, he goes on a murder spree, killing any "naughty" people.
Mother Superior, now wheelchair bound, is informed about the murders and is told that Billy is coming to the orphanage. She locks the doors and tries to calm the children with music.
Soon Billy arrives, and is let in by a child thinking that Billy is Santa Clause. Mother Superior guards the children and confronts Billy. Billy tries to kill her, but is shot dead.