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He knew, he just didn’t give a shit until Rudolph happened to be useful. It’s a capitalist moral sorry, showing that you will get things and be treated well only if you are useful to the rich overlords.
Of course he knew. That’s why he invited Rudolph into the lead position, at the front of the reindeer team. Santa didn’t really need a red light.
My takeaway as a kid was that bullies don’t get punished.
the magic flying reindeer union is not to be trifled with.