The song lyrics were written by the band Van Halen, as they were asked to write a song for the 1979 movie "Over the Edge" starring Matt Dillon. The movie (and the lyrics, although more obliquely) are about bored, rebellious youth with nothing better to do than get into trouble. If you see the movie, these lyrics will make more sense. It's a great movie if you grew up in the 70s/80s you'll definitely remember some of these characters from your own life. Fun fact, after writing the song, Van Halen decided not to let the movie use it.
Daddy don't live in that New York City
No more
He don't celebrate Sunday on a Saturday night
No more
Daddy don't need no lock and key
For the piece he stowed
Out on Avenue D
Daddy don't live in that New York City
No more
Daddy don't drive in that Eldorado
No more
He don't travel on down to the neighborhood
Liquor store
Lucy still loves her coke and rum
But she sits alone
Cause her daddy can't come
Daddy don't drive in that Eldorado
No more
Driving like a fool out to Hackensack
Drinking his dinner from a paper sack
He says I gotta see a joker
And I'll be right back
Daddy don't live in that New York City
No more
He can't get tight every night
Pass out on the barroom floor
Daddy can't get no fine cigar
But we know you're smoking
Wherever you are
Daddy don't live in that New York City
No more
No more
He don't celebrate Sunday on a Saturday night
No more
Daddy don't need no lock and key
For the piece he stowed
Out on Avenue D
Daddy don't live in that New York City
No more
Daddy don't drive in that Eldorado
No more
He don't travel on down to the neighborhood
Liquor store
Lucy still loves her coke and rum
But she sits alone
Cause her daddy can't come
Daddy don't drive in that Eldorado
No more
Driving like a fool out to Hackensack
Drinking his dinner from a paper sack
He says I gotta see a joker
And I'll be right back
Daddy don't live in that New York City
No more
He can't get tight every night
Pass out on the barroom floor
Daddy can't get no fine cigar
But we know you're smoking
Wherever you are
Daddy don't live in that New York City
No more
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Hmmm...This song paints a picture of a low end criminal type who had to get out of town....is he somewhere else, in jail, or dead?...We can't be sure but the piece is a gun he didn't have time to get or didn't need....the potential key is in the vague reference .."we know you're smoking where ever you are"...but it won't be fine cigars...probably never was so this doesn't have to indicate jail or any major change...he's just gone and we left to wonder