The band said of this song on their MySpace site: "This song is about that evolution of change. For better or worse our country isn't the same as when we were younger. When you grow up in America you're taught in the public school system to be loyal and to love your country through reciting The Pledge of Allegiance. In general, some of us covet it, or in some cases even rebel from it. Sometimes you can feel close or far away from a place, family member or even your own home town. It doesn't mean you love it less or disrespect it by disagreeing with its current values and or views. True patriots will stand for what they believe in, even if it goes against the grain. We jammed this one acoustic after hours and it clicked almost immediately. The way we play the chorus seems straightforward but there is a swing to it. This keeps it moving but still manages to be rocking. It reminds us of Woody Guthrie."
Drummer Branden Steineckert explained: "We had the idea early on of having songs where each singer in the band takes a verse singing. This is one of the first that we tried it on. Lars sings the first verse, Matt second and Tim sings the third verse. I had a little room in the bridge and last verse to throw in a few playful drum parts so I had fun with that. The drums on the beginning of the last chorus were inspired by Sham 69."
"(What's So Funny 'Bout) Peace, Love, and Understanding" was written by Nick Lowe in 1974. The original version with his group Brinsley Schwarz was kind of somber, but Elvis Costello made it a classic with his 1978 uptempo take.