The presentation of the Mayor and the Town Councillors in “The Happy Prince” satirizes the absurdity of the politics of the late 19th century, the period in which the story was written. Through the use of humor and irony, Wilde emphasizes the ridiculousness of these characters’ behavior.
This becomes most clear in the reaction of the Mayor and the Town Councillors to the Swallow and statue at the end of the story:
“And here is actually a dead bird at his feet!” continued the mayor. “We really must issue a proclamation that birds are not allowed to die here.” And the town clerk made a note of the suggestion.
Here, the absurdity of the idea of a proclamation against birds dying makes clear the ridiculousness of the town’s leaders and the rules they impose. The stark contrast between this moment and the emotional climax that has come just before it (in which the Swallow and Prince tragically die in an act of sacrificial love) emphasizes the heartlessness and cruelty of the town's leaders. That the town clerk immediately makes a note of the suggestion mocks how the town's officials unquestioningly heed the Mayor’s unreasonable proclamations.
Wilde further underscores this dynamic with the Town Councillors’ inability to do anything but echo the Mayor. The agreeability of the Town Councillors—who we are told “always agreed with the mayor”,—ironically descends into disagreeability when the Mayor proclaims that the town must have a new statue “and it shall be a statue of myself.” The Town Councillors, unable to do anything but echo the Mayor, all proclaim the statue must be “of myself,” culminating in a large quarrel about who the statue will depict:
“Of myself,” said each of the town councillors, and they quarrelled. When I last heard of them they were quarrelling still.
The Town Councillors’ inability to think independently highlights the true ridiculousness of the people who are meant to look after the town. The episode functions as a social commentary of Wilde’s Victorian context, with Wilde mocking the vanity of politicians along with the undue trust his contemporaries held for people in power.