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The setting of chapter 4 is the House of the Old.
The Giver is a dystopia that takes place in a supposedly perfect world called The Community. Everything is tightly controlled, and Sameness is enforced.
This chapter begins with Jonas riding his bicycle along the streets of the community. Since there are no cars, bicycles are how people get around. Jonas has been working on completing his volunteer hours before his assigned of a permanent job when he turns twelve. He has not focused his efforts in one place. He has taken the a little bit here, a little bit there approach. Jonas sees Asher at the House of the Old, and decides to join his friend.
The House of the Old is where elderly people are sent before they are released due to old age. It is a comfortable house, and the old are treated almost like children.
The Old were sitting quietly, some visiting and talking with one another, others doing handwork and simple crafts. A few were asleep. (ch 4, p. 28)
Jonas learns that there was a release that morning, but he does not know yet what that means. In the House of the Old, it is described as something that is celebrated. In fact, the Community euthanizes people when they get to a certain age and are no longer worthwhile to keep around.
Lowry, Lois (1993-04-26). The Giver (Newbery Medal Book) (ch 4, p. 28). Houghton Mifflin Harcourt. Kindle Edition.
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