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Air Pollution Circular Flow Chart
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Local Businesses
People may choose to stay indoors and not go outside in order to avoid the bad air. When people don’t go out local businesses don’t make a profit. This would cause many local businesses to go out of business.
Household
State Economy
Air pollution provides bad air to locals which can cause breathing problems and other health issues. For example, excess carbon dioxide in the air can cause lightheaded, breathing problems, and can affect a fetus during pregnancy. In Alaska we release lots of carbon dioxide into the air, especially in the winter time when we allow our cars to idle in order to warm up.
If local businesses don’t make a profit they will go out of business, this will hurt the local economy, which will cause Alaska to have a weaker economy. Local businesses are especially vital for a profitable tourist market, and if they go out of business Alaska's second largest market will decrease considerably.
Air
Polution
Government
Resources, Goods, and Services
If people do not have jobs because they cannot stay in business the national government will have to spend more on financial aid.
If the national government has to spend more money on financial services as well as have more states with failing economy the US economy will degrade which will hurt trade with other nations.
Local companies will not be able to remain in business which will hurt business owners financially, and they will have to take loans from banks and other means of receiving money in order to provide for themselves.
Rest of the World
With the US economy being the strongest in the world, there would be serious global repercussions if the economy were to begin to fail. Since so many other nations rely on trade with the United States other nations may suffer economically.