Bob Dylan - Positively 4th Street Lyrics Meaning

This is definitely about Bob Dylan's change of direction but it's unfair to characterize it as the folk community turning there back on Dylan. Historically it was other way around.

The song is written to Richard Farina (Joan Baez's brother-in-law) and was written in response to a comment Richard made to the effect that Bob had decided to stop discussing the serious subjects (race relations, war, labor justice etc.) that were the hardcore folk raison d'etre and go with more commercial, less serious subjects. The electric guitar thing is a red herring as the 4th Street crowd had no beef against the folk-rock crowd (Sim&Gar and the Byrds) as long as the message was on point. You have to remember that it was Richard that got Bob Dylan his first gigs in the village.

In the end this song was just a somewhat juvenile overreaction to a comment that hit a little too close to home.