Lyric discussion by Dunestrider 

The term "stonies" in the song is a term used in the Bloomington, Indiana area (where John Mellencamp is from and continues to reside) to refer to "local people" (as opposed to the college students of Indiana University in Bloomington). "Stonies" is short for "stone cutters", local workers who mine the limestone quarries. Sometimes they are also called "cutters".

@Dunestrider like in Breaking Away, right? Only they're called "Cutters" in that, I'm guessing both nicknames were used, one being affectionate (Stonies), one pejorative (Cutters)...love this song, the intro, of course, but always loved the lyric.

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