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Neil Young – Rockin' in the Free World Lyrics 6 years ago
@[MrBuffle:27217] Wow, it took me so many years to get here...
My interpretation is pretty close to yours. This song talks about how US manage external conflict and internal conflict. Critical about both. It says that the democracy we are living in (USA and most western countries) isn't perfect and point out at their flaws. The chorus has two sides, one says like you said, "keep telling yourself you're the best", and the other says "It's not perfect, but it's our world and we need to keep going on and do our best".

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