When you’re too hood to be in them Hollywood circles
And you’re too rich to be in that hood that birthed you
Nas is in a strange situation where he is too rich for the hood but doesn’t really fit in with other rich (and presumably lighter-skinned) people. He talked about this in Black Republican, and it also forms somewhat of a theme on Life Is Good.
Nas is explaining the nature of people in the black community from a sociological perspective, specifically the idea that citizens are a “product of their environment.”
Essentially, this excerpt describes the notion that putting people in a different setting or scenario will have little to no effect on their basic instincts and behavior.
It leaves open the possibility that once you grow up in an environment, you may never be able to shed the influence of that environment. In that sense, people from the hood are products of their environment (or at least the environment of their developmental years).
He talks about it in this interview:
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