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.
Joy is over there in her incredible clothes
She has silver silk shimmering down to her toes
I was doing the best that I can I suppose
But that little girl dancer
Eventually grows
Well she grows
You can't imagine all the times that I tried
To uncover the source of the tears that you cried
Let's throw it away and just go for a ride
And you'd say OK but you'd keep it inside
And I tried
I tried
I tried
I tried
We want you to be happy
Don't live inside the gloom
We want you to be happy
Come step outside your room
We want you to be happy
Cause this is your song too
I never thought I could have it so good
You were the song that my soul understood
That time is a river that flows through the woods
And it lead us to places we both understood
Would be gone
Before to long
Would be gone
Before to long
When we were young we thought life was a game
But then somebody leaves you and your never the same
All of the places and people belong to the puzzle
But one of the pieces is gone
And it's you
It's you
It's you
Joy, it's you
We want you to be happy
Don't live inside the gloom
We want you to be happy
Come step outside your room
We want you to be happy
Cause this is your song too
Anytime we'll weather this storm
Inside together you'll see the change
When the sun shines through
We want you to be happy
Don't live inside the gloom
We want you to be happy
Come step outside your room
We want you to be happy
Cause this is your song too
This is your song too
This is your song too
This is your song too
This is your song too
This is your song too
This is your song too
This is your song too
This is your song too
She has silver silk shimmering down to her toes
I was doing the best that I can I suppose
But that little girl dancer
Eventually grows
Well she grows
You can't imagine all the times that I tried
To uncover the source of the tears that you cried
Let's throw it away and just go for a ride
And you'd say OK but you'd keep it inside
And I tried
I tried
I tried
I tried
We want you to be happy
Don't live inside the gloom
We want you to be happy
Come step outside your room
We want you to be happy
Cause this is your song too
I never thought I could have it so good
You were the song that my soul understood
That time is a river that flows through the woods
And it lead us to places we both understood
Would be gone
Before to long
Would be gone
Before to long
When we were young we thought life was a game
But then somebody leaves you and your never the same
All of the places and people belong to the puzzle
But one of the pieces is gone
And it's you
It's you
It's you
Joy, it's you
We want you to be happy
Don't live inside the gloom
We want you to be happy
Come step outside your room
We want you to be happy
Cause this is your song too
Anytime we'll weather this storm
Inside together you'll see the change
When the sun shines through
We want you to be happy
Don't live inside the gloom
We want you to be happy
Come step outside your room
We want you to be happy
Cause this is your song too
This is your song too
This is your song too
This is your song too
This is your song too
This is your song too
This is your song too
This is your song too
This is your song too
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I think your first comment is closer to being accurate. The singer/song writers state "Millions of eyes can see, yet why am i so blind!? When the someone else is me, its unkind its unkind". I believe hes referring to the girl toying with him and using him. He wants something deeper with her, thats why he allows himself to be as a puppet (even though for her fun and games) as long as it makes her happy. But he knows deep down that she doesnt really want to be serious with him and thats what makes him.
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I read an interview w/ tom marshal talking about this song and it began as a song about their (him and trey) daughters, and then saw the opportunity to bring in trey's sister as a theme as well.