Yes fubar, it is cheaper not to recycle. But more importantly than that, it is more energy efficient not to recycle. In terms of environmental impact, the services and processes required to have a recycling system actually have a more negative impact on the environment than not recycling, in this current day & age of how recycling systems work.
So although we are saving some resources by recycling them, the damage we do to the environment by the recycling process actually negates the positive effect of the recycling.