The cost of landfill is not usually considered at full market value when comparing recycling costs because it can be passed on to somebody else, usually a future generation as was done with Love Canal.
First of all, Love Canal was a hazardous waste dump site, not Municipal Solid Waste dump site. There is a world of difference. A modern Municipal Solid Waste dump site is designed for permanent disposal, and the costs necessary to do this properly and safely are designed into the dump. Also, the lifetime operating costs of the dump are factored into the tipping fees, because these costs have to be capitialized while the dump is active.
Likewise, the cost of extracting new materials is not factored into the equation. For example, the cost of depleting the iron ranges in northeast Minnesota has produced generations of poverty and depopulation.
If Iron had never been extracted from Minnesota, would they be any richer? The Iron may be gone now, and the jobs may be gone now. But if there was no Iron mining, there would never have been jobs to start with. BTW, the vast majority of waste Iron and steel is recycled in this country, because it is profitable to do so.
Within reason, recycling has benefits beyond immediate economics. Giving those on the bottom of the economic rung a chance to work rather than claim a handout is one of those benefits.
Fifty million dollars in direct costs for NYC to provide subsistance level degrading work to a few homeless people is not a cost that is within reason. It would be far more cost effective to give them real jobs that don't involve sorting through other people's garbage.
The aluminum industry has been very responsible and successful about promoting recycling. The glass industry, on the other hand, has been a case study in irresponsibility refusing to do such simple things as standardize colors. Do we really need 128 shades of green for wine bottles, f'rinstance?
The economics of aluminum and glass are very different. Aluminum ore must be refined using a very expensive and energy consuming electrical cathodization process. Waste aluminum does not need to be re-refined, so these energy costs are saved. So recycled aluminum is an economically viable product, provided the costs of collection are not too high. The problem with residential recycling is that the costs of collection, especially when the real cost of time and resources in considered, is huge, far outweighing the value of the material recovered. As for glass, even if we had state-approved colors for bottles, the cost of reprocessing a glass bottle is pretty much the same as starting from virgin material, since the first step is to pulverize the glass bottle to where it is basically the same material as the virgin material. So even if there is no collection and transportation expense, glass recycling is not viable. The fact that there are a multitude of colors only makes in more unviable.
As an aside, the reason we need 128 shades of green is that there are 5000 manufacturers who are trying to sell their products, and will produce a bottle that displays their product in the best light and distinguish them in the marketplace. Consumers like pretty colors and shiny objects, and the producer is trying to maximize sales and profit. This is basic to the exchange economy and is the engine that makes our country run. If you don't like that, you have problems with this country that go far beyond waste management.
Another cost not recognized by the throwaway mentality is social costs. Again, I'll pick on the glass industry. When someone throws a beer bottle on the parking lot and damages a tire (or someone's bare foot), the cost of not recycling is imposed on a third party which gained no benefit from the transaction.
Littering is illegal in every municipality in the land. If someone is going to risk a $500 fine, a 5 cent deposit is not going to change his mind. If the beer bottle in your example breaks, the homeless guy is not going to pick it up to recycle it anyway. The cost imposed on society is not the cost imposed by not recycling. The cost is imposed by improper disposal. That is why there are legal penalties for improper disposal.
Therefore, I can support bottle deposit laws much easier than I can those on aluminum cans (the consequenses of stepping on cannot even compare to glass).
I don't know of any deposit laws that apply to bottles only. But bottle laws don't do anything about broken bottles anyway. That's a littering problem. There is a limit on how much money we should be willing to pay to solve that problem. Fifty million dollars in NYC would pay for a lot of street sweepers each year. It might even be possible to do the job for less.