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I think it's hilarious that a song title that nobody understood in 1982 is now a common expression.
When I used to hear this song when I was 9, I thought it had something to do with the Chicago "L" - the rapid transit system in that city. We had gone on a family trip to Chicago the year before, and someone kept talking about how Chicago had an "L."
This was different from the Chicago trip many years later when we protested the Par-King by blowing bubbles through the straw in our sodas at a Denny's restaurant. That was the same trip where someone tried to buy bubble gum from a machine at Six Flags and discovered it was actually a jawbreaker. It was later likened to reaching into your pocket and thinking you found a $20 bill, only to find it's a used tissue.
Although I heard "Take The L" when it was a hit in 1982, I never saw the video until at least the following year, when MTV finally came to town. I noticed that in most of the Motels' videos, lead singer Martha Davis always looked like she was about to cry as she sang. It was only then that I figured out the song had nothing to do with the Chicago "L." It also inevitably led to new Sesame Street-related lyrics being promulgated in our family digs: "Take the L out of lover and it's Grover."
Just in the past few years, "take the L" has become a common phrase. It's what you say to somebody when they need to accept losing an argument, an election, a court case, or some competitive activity. It has nothing to do with the Motels song, the Chicago "L", or Grover.