1. Cost. Recycling is not money friendly. Much cheaper to take raw material to make something than to recycle.
2. One thing the tree huggers don't want you to know is that much of recycling produces a LOT of toxins that still have to be disposed of. Good example is lead/zink acid batts. Yea you can do something with the plastic and metals but the old acid still is a toxic chemical even when neutralized. You create more toxins recycling paper than is reasonable. Our tree huggers don't want it burned.
3. Those people are stupid. They put in place heat and electric generation facilities that burn trash. They NEVER looked at running out of stuff to burn. So now they have run out of a "resource", go figure. Using a very low BTU fuel to produce heat and electricity isn't smart or efficient. Some US cities have in fact done this and because other cities have not they not only make heat/electricity but also make money buring other city's garbage. Thing is is it sin't a long term solution.
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