During this time he wrote and recorded such enduring songs as "City of New Orleans", a 1972 Top 20 hit for Arlo Guthrie and a 1984 #1 Hot Country Single for Willie Nelson; and "You Never Even Call Me By My Name", which was made famous by David Allan Coe in 1974.

He decided to create his own label, and Red Pajamas Records was born with the assistance of Goodman's long-time manager Al Bunetta.

[6] At first, Red Pajamas Records was a mail-order business, with Goodman and his wife Nancy receiving orders for Artistic Hair and shipping copies themselves at a rate of 5 or 6 per day.

The next two Red Pajamas releases of Goodman's music were compilations drawn from the earlier Asylum material, followed by a two-disc retrospective with both live and studio cuts (No Big Surprise.)

A 2006 audio release featured Goodman in a 1978 concert at Chicago's Earl of Old Town, and included musicians Corky Siegel on harmonica, Hugh McDonald on bass, Jethro Burns on mandolin, and composer David Amram on pennywhistle and percussion.

[9] In 2008, the label released an Extended Play CD titled The Baseball Singles containing 4 Goodman songs with baseball-themed lyrics, including "Go, Cubs, Go."

[10] The third tribute was the 2007 DVD Larger Than Life, a fundraiser for the Old Town School of Folk Music featuring Arlo Guthrie, Lyle Lovett, Jackson Browne, Emmylou Harris and John Prine.