Joseph Had a Little Overcoat

This book was awarded the 2000 Caldecott Medal. The main character is Joseph, a 40-something Jewish farmer, who has a little striped overcoat. When it is old, Joseph makes it into a little jacket and so on until he makes it into a button. Then Joseph loses the button and makes a story out of it. The moral of the story is "you can always make something out of nothing."