Especially on her early records, Rickie Lee Jones would often create characters for her songs that would play out events based on real-life experiences. "Living It Up" stars Eddie, C--t-finger Louie, and a girl named Zero. They all come together, pulled like magnets, to a strange place where it seems everyone is "living it up."
Jones had broken up with Tom Waits when she wrote the song, so listeners often ascribed at least some of it to him.
The "Oh yeah" backing vocals are by Sal Bernardi, Jones' collaborator and sometimes romantic partner around this time. He's the "Sal" of the song "Weasel And The White Boys Cool" from her first album.
Pirates was the second Rickie Lee Jones album, following her stunning debut that earned her a Grammy for Best New Artist. She became more drug-addled and less reliable after that first album, so the sessions for Pirates were a lot more challenging. By her own account, she would show up hours late for the sessions, but still expected the session musicians to remain engaged and develop and understanding of the songs.
On this particular session, she and her drummer, Jeff Porcaro, had a major dustup. Jones asked him to follow her, changing tempo as she did. He accommodated, but couldn't please her. Later, he was playing his part and she kept telling him (into his headphones) to play harder. Porcaro got so frustrated that he stuck his drumsticks like daggers right through his tom-tom heads and walked out of the session. Jones was furious, but got over it a few years later; she brought Porcaro in to play on her 1984 album The Magazine. No drum heads were damaged that time. From: https://www.songfacts.com/facts/rickie-lee-jones/living-it-up
