A town of fools is the base of a number of joke cycles found in various cultures. Jokes of these cycles poke fun at the stupidity of the inhabitants of a real or fictional populated place. In English
Molbos helped a shepherd to chase away a stork from the grain field while preventing shepherd's big feet from trampling the field
Wise Men of Chelm plotting to capture the Moon in a barrel
An ethnic joke is a remark aiming at humor relating to an ethnic, racial or cultural group, often referring to an ethnic stereotype of the group in question for its punchline.
Town of fools
…An Englishman, an Irishman and a Scotsman" Ethnic jokes Land of Fools…
Book of jokes about Jews published in the United States in 1908
Irish joke in Abiline National Bank ad (1914)