The “Iowa” state name comes from the Native American “Ioway” tribes, but some people give it a backronym (back acronym). ““I Owe the World an Apology” is an Iowa joke that has been cited in print since at least 1982, and has been popular in the neighboring states of Minnesota and Nebraska.
 
Other “Iowa” backronyms include “I Oughta Went Around” and “Idiots Out Wandering Around.”     
   
 
Wikipedia: Iowa
Iowa (/ˈaɪ.əwə/) is a U.S. state in the Midwestern United States, bordered by the Mississippi River on the east and the Missouri River and the Big Sioux River on the west. Surrounding states include Wisconsin and Illinois to the east, Missouri to the south, Nebraska and South Dakota to the west, and Minnesota to the north.
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Etymology
Iowa derives its name from the Ioway people, one of the many Native American tribes that occupied the state at the time of European exploration.
 
10 December 1982, Oskaloosa (IA) Herald, “Iowa jokes abound” by Tom Richter, pg. 4, col. 6:
The worst part of the Iowa jokes is that most of them are hilarious. For example, he’s been told that the word Iowa is actually an acronym for “I Owe the World an Apology.” Now that’s wit.
 
11 May 1983, Omaha (NE) World-Herald, ‘The Voice From the Grandstand,” pg. 41, col. 1:
As a resident of Des Moines, I am embarrassed at the letters from Iowans criticizing Nebraska sports programs. People like Bill Gray of Riverton should think before they write, so the rest of the country will not think I.O.W.A. stands for I Owe the World an Apology.
Ted Faubel, Des Moines
 
Google Groups: rec.humor
The acronym list (long)
sean lamb
6/6/90
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Iowa:
Idiots Out Wandering Around.
I Owe the World an Apology.
 
Google Groups: alt.tasteless.jokes
FLOOD JOKES
.(JavaScript must be enabled to view this email address)
7/23/93
Since no one seems to be picking up on this, I’ll give it a try…
IOWA -used to stand for I Owe the World an Apology
-now it means I’m One Wet Asshole
 
Google Groups: alt.tasteless.jokes
SD, Wy, MN, IA jokes
Cody Jones
11/21/93
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Q:  What does IOWA stand for?
A:  Idiots On Wheels Ahead, Idiots Out Wondering Around, I Owe the World an Apology.
 
Twitter
Tammy Lubijocky
‏@TammyDes
“Iowa.” Short for “I Owe the World an Apology.” #twitv
1:34 AM - 1 Mar 2009
 
Twitter
Zach King
‏@zachking
@duregger you know IOWA stands for “Idiots out wandering around!” OR “I Owe the World an Apology”// I am from Nebraska so you know…
1:00 AM - 3 Oct 2009