posted by rfvv Thursday, March 22, 2018 at 6:36am

On the way home, Mom smiles and says, "Good job, Hojin. The concert is over. Move and laugh now. It's okay."
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In this context, in the last sentence, 'What does 'It' refer to?

Writeacher Thursday, March 22, 2018 at 7:37am
That is the good old generic use of "it" again! There is no particular reference, but the word seems to mean his life or the current circumstances.
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1. Move and laugh now. It's okay.
2. Moving and laughing now is okay.

[Doesn't "It" refer to 'Moving and laughing now' as in #2?]

"It's okay!" in this context is just as I explained before. That's the generic "it" just as in "It's been raining for 2 hours now" or "It's great that you have been accepted at _____ University." (Etc.)