This is an idiom in English, meaning something like: "when all the facts are considered," or "when you think about it," etc. An idiom need not make strict grammatical sense, and this one doesn't seem to either - and in any case, trying to analyze idioms is generally not profitable; you just accept them as is, as their exact origins are shrouded by hundreds of years of tradition and popular usage. However, with this particular one, one might conjecture how it originated.
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enoonbut you might say that the matter at hand can be reduced to a fundamental element, what follows the expression.That's what I thought. Good.
TakaSo if the first "it" was replaced with "things" as this. would it still work?When things come right down to it, you have to admit he was mistaken.No.
TakaAnd what about this? If it worked, why would it work when the subject is a human being?When you come right down to it, you have to admit he was mistaken.That works. T