Lyric discussion by RIPhillel 

Cover art for Somewhere Over The Rainbow lyrics by Jimi Hendrix Experience, The

Here's my take:

The first verse is about the desperation of the culture at the time, whether it be residual nuclear anxiety, the civil rights movement, or anything, really. Just people trying to reach salvation, but not quite getting there.

The second is again about strife- how we can't get along and how strange that would be to outsiders.

The third verse is about corruption, selling out, etc. He's drinking in the saloon because he's depressed that the record companies will control him and try to 'wrap me in cellphane and sell me'. Think Kurt Cobain.

Anyways, that's my two cents.