The suburbs emerged after WW2 to further enmesh white petty bourgeois and wealthier elements of the white working class into the imperial capitalist system. White flight was an opportunity; it offered these comfortable white cohorts a chance to become property owners and to escape the increasingly Black and Latine urban cores, which they associated with crime, violence and poverty.
Your Freddy Kreugers, your Friday the 13ths, your Stranger Things are all that violence coming back to pierce the suburban facade of homogenous safety. They're expressions of white petty boug' (and labor aristocracy's) fear of The Other, and a warning that the world past Elmdale Lane is hostile and best left unexplored.
spoiler
After dragging Freddy into the waking world, the surviving heroine concludes that Freddy can only hurt you if you're afraid of him. So she consciously turns her back as he charges her, willing herself to calmness, and he vanishes in a puff of logic.
The next scene is surreal, as she reunites with the loved ones Freddy killed. She climbs into her boyfriend's car, but as they drive away the car locks itself and starts speeding uncontrollably. Freddy bursts through the window and the movie ends.
It's one of the most notorious horror movie plot twists.
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