Heavily influenced by It's a Good Life (The Twilight Zone) 1961
It's uncannily similar in parts to probably the best Twilight Zone episode which was ever made, "It's a Good Life". They must have been influenced by it. Or the 1953 short story written by Jerome Bixby.
Most film fans will probably be more familiar with the "It's a Good Life" remake (directed by Joe Dante. Gremlins, Innerspace, The 'Burbs etc). Which was one of 4 segments of the Twilight Zone: The Movie. Although not as good as the original. It was still pretty darn good imo.