It's a Good Life

By Jerome Bixby, first published in Star Science Fiction Stories #2 (Ballantine Books).

An all-powerful, magical three-year old boy who can read minds, manipulates beings and objects, and more, terrifies a town into declaring everything is fine even if it is not, out of fear of the boy’s intervention. One night at a town gathering, the birthday man being celebrated gets drunk and angry at Anthony, who retaliates violently.

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