The Man teaches The Boy quite a bit in this little exchange. He breaks the news to The Boy that the "bad guys" are going to eat the people they just saw shut in the basement. He also outlines the basic limits of compassion in the novel: you can't help too many people because the "bad guys" will catch up with you. The Boy and The Man have to limit their generosity because of the scarcity of food and the constant dangers on the road. However, The Boy's questioning of these principles keeps The Man honest. We also think it stirs up a great deal of admiration for his son.