The transformation of Pinocchio and Lampwick into donkeys serves as a harsh lesson regarding the consequences of idleness and truancy. The narrative reveals that the driver of the wagon is not merely a transport provider, but a "donkey dealer" who scours the world for "lazy boys" who have "run away from home and from school." These boys, deemed "destined to become donkeys," are captured and sold into forced labor. This transition marks the beginning of their exploitation, as the driver views them strictly as commodities to be traded at the market.
Once sold, Pinocchio finds himself under the ownership of a "mean and greedy" circus proprietor. The owner’s primary objective is to monetize the donkey's existence, forcing Pinocchio to undergo rigorous training to "jump and bow, dance a waltz and polka," and even "stand on his head." The circus owner’s manipulative nature is evident in how he markets the animal; he lies to his audience, claiming he found the donkey in the "wilds of Africa" and that it was a "savage, violent beast" that he had to "tame." This fabrication highlights the disconnect between the truth of the donkey's origin and the profitable persona crafted for the public.
During the grand performance, Pinocchio is "dolled-up" in "shining leather" and "polished brass buckles," adorned with "pretty flowers and ribbons." Despite his elaborate appearance, Pinocchio’s internal state is one of distress. His performance is a series of rehearsed drills—walking, trotting, galloping, and playing dead—yet his focus shifts when he spots a "beautiful woman in the stands." Upon recognizing the medallion around her neck as a picture of himself as a puppet, he realizes it is the Fairy. His attempt to communicate, "Hurry," results only in a "horrible honking bray," which triggers laughter from the audience, deepening his "shame."
Distracted by his grief and the disappearance of the Fairy, Pinocchio’s performance falters. He fails to jump through the hoops, trips, and injures his leg. The doctor’s declaration that the donkey will be "lame for the rest of his life" renders Pinocchio a "useless beast" in the eyes of his greedy owner. The owner's immediate reaction is to drag Pinocchio back to the market to sell him. Fearing an even worse fate under a new master, Pinocchio exhibits a final, desperate act of agency. He pulls away from the circus owner and, despite his injury, chooses to "run like lightning," signaling a pivot toward survival and the hope of escaping his predetermined life as a beast of burden.