Frank Capra’s 1946 It’s a Wonderful Life follows the story machine model to a dime. Let’s take a deep dive into the plot.

External Goal and External Risk

While this film features love, family, money is the critical ingredient to the plot.

You see, George Bailey, the film’s protagonist, passes up countless opportunities to see the world in order to keep the Building and Loan financially solvent. Henry Potter, the main antagonist, tries to leverage his wealth to control every aspect of the town. For the minor characters of the film, this holds true too. On the night of George’s wedding, there is a run on the bank, and all the characters voice their concerns about financial loss. This is established early in the plot and reiterated often.

There is no better example of this than when Uncle Billy accidentally hands over a check for $8,000 to Potter. This jeopardizes the financial security of the business and means the bank examiner can arrest George Bailey as a result of the financial loss.

Protagonist Name: George Bailey
External Goal: Financial Security
External Risk: Financial Loss Antagonist Type: Person or Group
Antagonist Name: Potter

Internal Goal and Internal Risk

Why do these characters care so much about money?

George Bailey has dreams. He wants to see the world. He wants to help people. He wants to live a meaningful like, a eh-hm “Wonderful” life. Throughout the film, financial concerns constantly prevent him from achieving this. When the $8,000 check is lost, George Bailey contemplates suicide, because he feels he has wasted his life. The dreams that have motivated him since he was a child are completely lost.

Protagonist Internal Goal: Status
Protagonist Internal Risk: Disregard

For Potter, his obsession with money revolves around his pursuit of competence. Money has allowed him to acquire property, capital, and great influence. However, the Building and Loan has always eluded him. For Potter, this business and George Bailey are the blemish on his authoritarian quest for power.

Antagonist Internal Goal: Competence
Antagonist Internal Risk: Incompetence

Why do we root for George Bailey?

While rooting for a dispicable ol’ codger like Potter is probably something you’ve never considered, a crafty writer could have easily spun this story to favor potter. Fortunately, that’s not the case. George Bailey is a tremendously likeable character due to his determination to help his friends, family, and community. That’s enough for me to root for him, especially when going up against a greedy man who tries to keep the small guy down.

Protagonist Input: Determination

Coping Mechanism

While the Building and Loan seems like it’s always on the brink of collapse, George Bailey is the one thing in town that eludes Potter during the first half of the movie. George Bailey is able to avoid Potter by keeping his company plodding along. That is, until, of course, Uncle Billy loses the check.

Coping Mechanism: Avoidance

How does the film end?

Since the film is one of the ultimate feel good Christmas movies, I think it’s safe to assume things work out for George Bailey.

When all the people in town show up and bring gifts, this is more than enough to cover that lost check. In fact, it’s probably enough to keep the Building and Loan in good shape for a few years. Maybe George and Mary can go on a vacation. Whatever, not important. What’s important is that the external conflict is resolved.

In regards, to the internal conflict, this is resolved in Clarence’s note. “Remember no man is a failure who has friends.” George doesn’t need to explore the world to achieve the status of a successful man. No, he is able to do that in what he once called “a crummy little town”

Achieves External Goal: achieves
Achieves Internal Goal: achieves

How is this supposed to make the audience feel?

Joy! George Bailey runs through the center of town. His friends and family sing and celebrate.

With that said, George’s character arc is complete. He goes from a man on the verge of jumping off a bridge (shown in the flash forward at the start of the film) to a man appreciating life, surrounded by his friends and family. Beautiful.

Starting Emotion: Sorrow
Ending Emotion: Joy

How to create your own story analysis

Agree or disagree with my analysis? Regardless, this analysis was created by using the Story Machine. This tool allows your to quickly identify the conflict within a story and outline the plot. This was created by analyzing the plots of hundreds of movies just like It’s a Wonderful Life. It’s a must have tool for writers and story lovers alike.

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