Re: [GRRN] WASTE MERGERS MIGHT SLOW RECYCLING

William P. McGowan (6500kai@ucsbuxa.ucsb.edu)
Mon, 12 Apr 1999 12:30:48 -0700 (PDT)


A brief lesson in Schumpeterian economics:

If a large company reaps windfall profits, ,like many think will happen
in the garbage industry, then these windfall profits will attract
competition, which in turn creates downward prssure on prices until
ultimately profits return to historical averages. This has been the case
for one hundred years, and I see no reason why it will not continue to be
so.

Bill McGowan
History, UCSB
Rincon Recycling