Enough space to move freely or extend your arms without hitting things, or freedom to act without restrictions.
Compound of 'elbow' and 'room' (from Old English 'rum'). Originally literal—physical space needed to bend your elbows—it evolved metaphorically to mean freedom and flexibility in general.
This word is a perfect example of how humans think in body-first terms: we literally measure freedom by how much space our elbows have, so the phrase stuck around even when we talk about political freedom or creative license!
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