- Grandma Lausch isn't pleased with Augie's closeness to Jimmy Klein and implores with him to do better. She figures the other boy is a thief and she's right.
- She also tightens discipline around the house, holding Augie to strict standards of appearance and grooming.
- Augie denied Klein's criminal behavior, but he's currently involved himself in a swindle with Klein.
- They're working as Christmas helpers to Santa Claus and stealing money as it's being collected and carried around.
- Their thieving brings them good money. Augie buys nice gifts for his family and friends.
- Eventually, their stealing catches up to them. Augie doesn't deny doing wrong.
- Grandma Lausch is furious. Both she and Simon are distant.
- Augie figures his mother blames his father for the way he's turned out.
- They stolen money is repaid, and Augie returns to being on good terms with the Klein family.
- Augie has his first big crush, on a girl named Hilda. Nothing comes of it.
- Jimmy and Tom tease him.
- Around this time, Augie's mother shows signs of distress, more than usual.
- The reason becomes apparent when Grandma Lausch announces that Georgie needs to go to an institution, for his safety and that of others.
- Augie is opposed to this. Grandma throws his thieving back in his face.
- Simon agrees with her.
- Augie ceases to see Grandma as an authority in the family. For him, Simon begins to take on that role.
- Deciding to go herself to the caseworker, Grandma leaves the house for the first time since having fallen on Election Day.
- Augie spends more time with Georgie, knowing their time together is limited.
- When it's time for Georgie to be taken to the institution, Grandma refuses to come out of her room.
- Only when they arrive at the Home an hour later does Georgie realize he's there to stay. He lets out a moan.
- Family life becomes especially diminished after that. Apparently Georgie has been the basis of their household union.
- Simon verbally disrespects Grandma Lausch, calling her "Grams."
- She loses faith that the boys will amount to anything worthwhile.
- Winnie, Grandma Lausch's dog, dies that year.