(...)not a bad idea when landfills are filling with the stuff, but perhaps not as good overall as changing the plastic back into, well, plastic, and just reusing it.
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Plastic recycling back into plastic the stuff IS useful) already has a little momentum, but there are issues in either case.
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The problem for either case is separating them for better recycling, and oh yes - how much of the plastic in your garbage is clean? Does it still have soda pop in it, food bits, a label, and so on? Metal foil?
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It's my own belief that landfills will be the rich mines of the future, if we can solve the separation issues - which we should be doing on the way in, frankly, when it's a lot easier to separate the bottles and baby diapers from the electronics and furniture and paper and metal cans.
comprehensive as usual, DCFusor

. I cannot agree more. Out of the "three Rs" (Reduce, Reuse, Recycle), Recycling is the one that has the LEAST potential to have ANY significant impact on our rate of wrecking the planet, but... hush, hush, the other two "Rs", are not good for the Economy, as we commonly define it - i.e.: GDP must go up, up, up, consume, spend, spend, consume!!!! (on a side note, they are simply GREAT & UNBEATABLE for the economy, as the dictionary explains the word - i.e., "using land, labor & capital, in a MOST EFFECTIVE WAY")
If we want impact positively everything - than first,
Reduce the use of non-sustainable things in your life, that has the most potential, secondly,
Reuse things (buy second-hand spare parts where applicable, generally, buy high quality, lasting second-hand stuff, over new, but cheap shit etc.). Recycle, is the third one, and as I said before - despite being the most promoted one, it in fact has the least potential to make any significant impact on the bigger picture.
Re: landfills being future mines - I agree. Even today, they start that already - like power plants, that are fired with the methane being naturally released in landfills, in anaerobic breakdown of shit there. Several going commercial, that I've heard off, well past R&D phase. I think that nanotechnology might in the future give us required scale, to separate basic materials in the landfill - think about nano-mech ants, being as effective in cleaning the landfills, as the real ants are, in sanitizing landscapes from any bio waste.
Recycling plastic into a fuel, to burn the shit out of it- just like Fusor said, it in fact is one of the stupidest ideas, if you look at the full picture. All kinds of plastics, are about the most useful things, we can possibly produce out of oil. Burning plastics (just as burning the oil), is one of the more wicked things, we can do.
Separate thing is, that using plastics, to make use-once-throw-away things, is also amongst the stupidest ideas ever. Why a substance, that will last hundreds of years in a landfill, is used to produce things, that are meant to be throw-away ones?! Ridiculous. Use freakin' paper/cellulose, or something like that instead!We can mince it after use, and spread over our gardens, if we are so inclined to use disposable things (which again - I find utterly stupid idea).
Lastly, what you mention re: the quality of recycled plastic being an issue - one of my friends, is running a business manufacturing all kinds of plastic stuff. He was trying once to run on recycled feed stock. It didn't work for him - exactly, for the reason of not-consistent feed stock quality, causing stoppages, WAY higher maintenance costs, and quality control issues. It was years ago, and truthfully, it wasn't very sophisticated method for obtaining the feedstock - just shredding different kinds of recycled stuff into something resembling your regular plastic feed stock, that could be heated and press-formed.