Lyric discussion by adamcohen81 

I agree with raysuq's insight into the transparent dangling carrot. I think, though, that she means it as something that we need to notice and eventually free ourselves from. I think that she's referring to the conditions of worth that our consumeristic society forces on us. We are constantly told in indirect ways that we are not good enough, but that earning and buying more will solve all our problems. Instead of helping us heal our false sense or inadequacy, our society accentuates that inadequacy and then tells us that consuming material goods is the answer. By swallowing this lie, we are enslaved into an endless carrot chase, and if we ever caught the carrot we'd see that it is no cure at all.
Alanis seems to have learned the India spiritual belief that the cure (self love and acceptance) is inside of you all along. The path to the cure is an inner one that requires self-control and patience. Instead of joining the carrot chase, simply sit still and do nothing, think nothing, and make peace with all the demons that have been chasing you.

@adamcohen81 Exactly right. This is a very Gen X song, coming to terms with the difference between the ways of the world as taught to us by our parents and the ways of the world as we encountered them. The dangling carrots weren't even invisible in our parents time, postwar USA was booming and one could make a great living at the same company for life. Loyalty was rewarded, pensions were real, and you could see the carrots driving you forward.

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