There is no financial incentive to use recycled goods. They cost more than 'fresh' goods, they require additional processing, they add risk from material contamination (not biologic, structural and chemical). There are a dozen different reasons for this but much of the blame can be laid at the feet of the amazingly interlinked municipal waste management structure.
Here is a situation where you could hire anyone from students, to sex-offender ex-Cons, to the mentally impaired to work at a recycling plant pre-processing material for effective recycling, thus providing jobs for anyone willing to work. They get paid and perhaps feel good about helping the environment, and the supply of recycled material goes up and helps push the price down on the spot market.
Financially you are going to lose taxpayer money running those plants because it is cheaper to make this stuff fresh, but its perhaps a better investment than other assistance programs.
[1] http://www.sec.gov/news/headlines/wastemgmt6.htm
[2] http://www.nytimes.com/2002/11/22/us/mayor-and-trash-hauling...
[3] "Landfill company sued over bribery case" http://www.wwltv.com/story/news/2014/08/29/14405720/