My father (who was even less interested in Bob Dylan than I am, which is saying something) always thought it was an American rah-rah patriotic song and it was the US flag that was meant to be blowing in the wind and would be the answer to everything. The song is vague enough that, from what we had to go on in New Zealand when it came out, he could perfectly well have been right.

BTW, I can't think of a suitably insulting phrase for the US flag, along the lines of "The Butcher's Apron" for the British one - surely somebody's thought one up?