The song was birthed during a ride that Troy Jones took in his Alabama home state. He recalled to The Boot
that as he was driving he "was trying to think of three things you can't argue with." Jones came up with "God is great; beer is good; people are crazy."
Once he'd returned to the house, Jones got his guitar out and wrote several lines that ended up being the first verse of "People Are Crazy."
Jones had his first writing session with Bobby Braddock booked in for the following week, so he held onto the lyrics and melody. When he played what he'd come up with, the legendary songwriter responded positively and together they completed the song.