Satire in Rip Van Winkle

William Harmon and C. Hugh Holman write that satire is, "A work or manner that belends a censorious attitude with humor and wit for improving human institutions or humanity. Satirists attempt through laughter not so much to tear down as to inspire a remodeling."

How is "Rip Van Winkle" a satire? What is Washington Irving satirizing? How do you know?