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Applying Enronomics To Recycling

Sports Betting Tip Even if, like me, you don't agree with the City Council's new plan to keep recycling alive, you have to admire the chutzpah of it. This is the work of politicians who do not run from trouble.

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Betting Internet Said Recycling is in some ways the Enron of New York City. When the original recycling law was passed in 1989, members of the Council and their environmentalist allies assured New Yorkers that the recycling program would save the city money. They kept up the promises even as the losses steadily increased, eventually exceeding half a billion dollars the amount New York City could have saved over the past decade if it had simply shipped the trash to out-of-state landfills.

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Football Betting Faced with a budget crisis, Mayor Michael R. Bloomberg wants to save $56 million next year by eliminating the recycling of metal, glass and plastic. You might think his proposal would give recycling devotees a chance to take their losses quietly and exit. You might think some of them, like Enron executives, would even concede that they'd been unrealistically optimistic.

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Sports Betting Forum Instead, though, we have the equivalent of Ken Lay announcing that he's still bullish and in fact is so pleased with things that he's giving himself a raise. Unfazed by the city's financial woes, the Council is proposing to spend more money on recycling.

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Internet Betting Poker This money will come from what are essentially $100 million in new taxes on New Yorkers who buy bottled drinks. About a third of the revenue would come from a new "disposal fee" of a nickel on bottles of juice, water and other noncarbonated drinks, which aren't covered by the current law requiring a nickel deposit on carbonated drinks. The other two-thirds of the $100 million would come from all the unredeemed deposits on carbonated beverages, which the beverage industry currently gets to keep.

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Sports Betting Site "Those unredeemed deposits are the people's money," said Michael E. McMahon, the Staten Island councilman who is chairman of the Council's committee on sanitation and solid waste management. "We're giving it back to the people."

Internet Betting On Horse But if the city pockets that money instead, the people are going to be spending more of their other money on soft drinks, because beverage companies would presumably raise prices to make up for their lost revenue. And it's not exactly accurate to say that those unclaimed deposits would be returned to "the people," unless the people you mean are public employees.

Horse Racing Betting The $100 million from drink buyers would go to a new agency created by the state, a recycling authority, which would manage the curbside recycling program. The bottles and cans would still be picked up by the Department of Santitation, but the recycling authority would be in charge of disposing of the stuff.

Betting Big Bingo Gambling WHY, aside from providing jobs for friends of council members, does it make sense to hire a new set of middlemen to get rid of recyclables? The Council's proposal promises that an independent authority would have "the entrepreneurial flexibility" to make recycling more efficient, but the history of public authorities like this is not encouraging.

Horse Betting The Off-Track Betting Corporation was given a monopoly in one of the world's most profitable businesses and still managed to lose money. Imagine what a similar group of political hacks could do with a business that's unprofitable to begin with.

Online Sports Betting Site Mr. McMahon and other council members blame the failure of recycling so far on the Department of Sanitation. "It has a poor track record with regard to marketing the materials it collects," according to the Council's proposal. But no marketer could have compensated for the flaws in the Council's recyling program.

Soccer Internet Betting The Council pointedly ignored the market in its 1989 law. It dictated the exact number of tons per year of material that would be recycled every year, ignoring the fact that markets for recylables are volatile. That was like issuing an order in 1989 telling New York shoe stores precisely how many pairs of brown loafers they would sell in 1998.

Beat Betting Casino Formula Now the Council wants to add more central planners and set even more unrealistic goals. It's still ignoring the basic problem of an industry that uses high-priced labor to produce low-priced materials. Unless those factors change and the long-term trends suggest that the numbers will only worsen a new recycling authority would just mean more losses.

Sports Betting Pick There may, though, be a way to encourage recycling while also saving the city money. It could be done without any new taxes levied arbitrarily on people who buy bottled drinks. In fact, it might help to make New York's tax system more fair. More on this next week.

Internet Betting Online By John Tierney
New York Times - 4/12/2002

Topic: Recycling

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