[2] Phillips and Kail were influenced by D. Boon and Mike Watt's New Alliance Records label and decided to create their own to promote bands they knew.
[2] Alongside New Alliance, New Underground was one of the first DIY labels in the South Bay punk scene of the 1980s.
[1] Their compilitation album, Life Is Ugly So Why Not Kill Yourself, featured songs by Red Cross ("Rich Brat" from Red Cross),[3] Descendents ("I Wanna Be a Bear" from Milo Goes to College),[3] Minutemen ("Shit You Hear At Parties" from The Politics of Time),[3] Saccharine Trust (Disillusion Fool),[3] Mood of Defiance ("Empty Me" from Now),[3][4] and Ill Will ("Paranoid Midnight Deposit".
[2] Other compilations were entitled Life Is Beautiful So Why Not Eat Health Food?
and Life Is Boring So Why Not Steal This Record?,[2] with the latter featuring artwork by Raymond Pettibon.