The Roar Of Inflation
In recent months, many entrepreneurs have been second-guessing Federal Reserve Chairman Alan Greenspan's aggressive inflation-fighting. I'm afraid I can't join the chorus. Our packaging business is awash in rising costs. The price of the plastic sheeting we convert into bags has risen more than 20% in the past 18 months thanks to a rapid consolidation among suppliers and skyrocketing oil prices. Other basic supplies like boxes have jumped over 10%. To top it off, the sizzling San Francisco Bay Area housing market, combined with a rock-bottom jobless rate, has compelled us to increase wages 5% this year.
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