Where are they?

Act 2 Scene 3 is set in the Kit-Kat club, Emcee enters in front of a paneled scrim. The fact that a blank screen on the stage when Emcee sings the song is a clever way of drawing the attention away from the rest of the story. Having a blank canvas for this particular scene allows the audience to just focus on Emcee and what he is singing about. The club is always dark but the lead singer or Emcee in this scene is lit by a spotlight so that everything in the club is dark besides Emcee. They are also in a time of change, with the state of politics in Germany. So the people of Berlin are used to living life they want, mixing with Jewish people, but Emcee tries to highlight where Berlin's state of mind is.. confused.

http://tennesseerep.org/blog/cabaret-radio-commercial/