Q: If the Sun pulls things directly toward it, then why does everything move in circles around it?
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A planet moving around the Sun in a circular orbit always has the Sun about 90° to the side of the direction they’re moving. Why things end up in circular orbits is a more subtle question. When things are in highly elliptical orbits they tend to “drive all over the road” and smack into things. When things smack into each other one of a few things happen; generally they break or they don’t. This is a part of accretion, and Saturn’s rings provide a beautiful example of the nearly perfect circular orbits that result from it.