Meaning of the word 'Tragedy'

My brother Koew sent me this joke by Anonymous:

President George Bush is visiting an elementary school today and he visits one of the classes (4th grade). They are in the middle of a discussion related to words and meanings.The teacher asks the President if he would like to lead the class for an example of a "tragedy".

One little boy stands up and offers, "If my best friend, who lives next door, is playing in the street and a car comes along and runs him over, that would be a tragedy". "No", says Bush, "that would be an accident."
A little girl raises her hand: "If a school bus carrying 50 children drove off a cliff, killing everyone involved, that wold be a tragedy." "I am afraid not," explains Mr. President, "that’s what we would call a GREAT LOSS."

The room goes silent. No other children volunteer. President Bush searches the room. "Isn’t there someone here who can give me an example of a tragedy?".

Finally, way in the back of the room, a small boy raises his hand. In a quiet voice he says, "If an American Air Force plane, carrying Mr. & Mrs. Bush, were struck by a missile and blown up to smithereens, by a terrorist like Osama Bin Laden, that would be a tragedy."

"Fantastic!," exclaims Bush, "that’s right. And you can tell me WHY that would be a tragedy?"
"Well," answers the boy, "because it wouldnt’be an accident, and it certainly would be no great loss."

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