Very few songs are written about disillusion, this one being possibly the most poignant and beautiful. Bizarrely, it is also a song about optimism.
The singer describes watching her house burn down, visiting a circus, and falling in love; none of which live up to her expectations. Instead she suggests to accept what comes, break out the booze, and have a good time. In other words 'carry on dancing'.
A great song, sung by a great singer.