We must be out of our minds.
Still, we are shipmates bound for tomorrow and everyone here's flying blind.
Oh, we must believe in magic.
We must believe in the guiding hand.
If you believe in magic, you'll have the universe at your command.
Gale performed the song on The Muppet Show in 1977. The Muppets were always spouting off little nuggets about love and life and whatnot. And that's because Jim Henson really believed in the power of magic and laughter. If you remember, in the original Muppet Movie, the finale song is all about reaching your aspirations and really believing in yourself:
Life's like a movie, write your own ending.
Keep believing, keep pretending.
To finish this little thing, everyone should listen to Johnny Cash's cover of "We Must Believe In Magic", from his Adventure of Johnny Cash album. It adds depth and poignancy to the already great song.