Lyric discussion by charlesalden 

In the second verse, Jeff is showing two people who are so stubborn that they both take satisfaction in "being undefeated" - they agree to disagree - so they're both right.

By the end of the song, they get over their differences. They embrace the situation and side with each other, rather than standing on principle.

It is such a beautiful song, regardless. Its worth going to amazon.com, typing in Wilco, and watching the video.

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