The first flight on Sunday, July 1, will be operated by Eurowings on a direct route from Cologne to Osijek and back. Two rotations (return flights) per week are planned, on Wednesdays and Sundays, by Airbus 319 aircraft with a capacity of 144 passengers.”The new line is the result of our efforts to connect Osijek with more distant European cities. Each new line, in addition to passengers who come and go to visit their friends and relatives, creates new opportunities for the development of tourism and the economy in Osijek, Osijek-Baranja County and the entire region. It is important to emphasize that with the introduction of this line, passengers from Osijek will have the opportunity to continue their travels to as many as 23 destinations in eight European Union countries. Ticket prices for Cologne are more than affordable and range from 39,99 euros ”Said Davor Forgić, director of Osijek Airport for Glas Slavonije.In addition to that flight, Osijek Airport with Eurowings has established a line to Stuttgart with two rotations per week (Tuesdays and Sundays), which due to the excellent occupancy and great interest of passengers from this year becomes year-round. Last year, a year-round flight to Basel was established with Wizz Air, and from March 25, ie from the beginning of the summer flight season, it was increased from two to three weeks of rotation, with Monday and Friday flights added on Wednesdays.also, throughout the year in cooperation with Trade Air, Osijek is well connected with domestic destinations – Zagreb, Split, Dubrovnik, Rijeka and Pula, and at the end of March this connection was increased by direct flights to Split and Dubrovnik by Croatia Airlines. Osijek Airport plans to double the number of passengers this year compared to last year, when 43.373 passengers were registered.Source: Voice of Slavonia
The 3rd Days of Business in Tourism were held in Osijek today. At 10.00 am when the “doors” of the Sports Hall Gradski vrt in Osijek were “open”, and within 20 minutes the whole hall was full of people who want to work in tourism during the season. It’s far from ideal, but things are definitely getting better. Of course, the problem is that the root of the problem wasn’t solved as he screamed for years and it was just a question of when the “bubble” would burst, not now that the problem had escalated. All in all, certainly the Job Days in Tourism are a great project as well as an opportunity for both employers and the unemployed to meet in person on the spot and get all the answers to the questions directly. On the other hand, the Ministry of Tourism expects a lot from the programs of the Regional Competence Centers, which aim to strengthen the attractiveness of vocational education and training in the tourism and hospitality sector, and which should soon see the light of day. Namely, competence centers will be active in six cities: Split, Zabok, Pula, Osijek, Dubrovnik and Opatija. Also, this year, job advertisements are active throughout the year, which are published on the websites of travel companies. Larger companies have also opened FB pages where they try to animate future employees throughout the year, in order to ensure a sufficient number of employees they need for the peak tourist season in the shortest possible time. The bitter taste remains that none of the exhibitors made the slightest effort to decorate their stand, except for the classic counters, “penguin” banners and posters, and none of them stood out to attract attention, and thus perhaps better quality, ie more experienced staff. As much as the fact that there was great interest and a full hall at first glance is gratifying, it all looks like a classic and cold-blooded hunt for resumes. Fill out the form and I’ll talk to you. Although all the stands, out of a total of 80 employers, were filled, the Valamar Riviera stand attracted the most interest. Although it was very crowded at first, the general impression is that noticeably fewer people eventually came to the 3rd Days of Business in tourism. This is evidenced by the fact that at 13.00 the whole hall was practically empty, and at 14.00 a good part of the exhibitors had already left the hall. Interestingly, according to information from the Croatian Employment Service (CES), there are currently about 160.000 unemployed, all of whom were surveyed by the CES on whether they want to work in tourism. Out of the total number of 18.000, they stated that they see their business opportunity in the tourism sector. It is certainly commendable that among the 80 tourist employers, there was one from Slavonia, more precisely Hotel Osijek, who tried to rust the workforce at home. As last year, bus transport was organized from various surrounding cities and counties, so at around 12.00 in the parking lot in front of the hall were parked over 29 buses that came from all over Osijek-Baranja, Vukovar-Srijem and Požega-Slavonia counties. What is certainly gratifying is that the tourism sector took the problem of labor shortages seriously this year, while last year it remained unprepared and did not seem to believe that with all the warnings about labor shortages, it would come true during the season. Precisely from the bad experience from last year and a kind of panic that directly threatens business, most travel companies, especially the largest ones, have significantly improved working conditions this year. From the increase of fixed salaries, the introduction of various supplements from recourses, Christmas bonuses, etc.… to other various financial incentives. What is finally becoming the standard and what I could hear walking between the stands, everyone brags about how they provide accommodation, with air conditioning, TVs, etc.… three meals, a break, fixed working hours which should have been the minimum standard a long time ago so that the whole problem of labor shortage would not escalate in this way. Estimates say that for this tourist season, there will be a need for 15.000 seasonal workers, up to 20.000. On the other hand, the Government of the Republic of Croatia increased the quotas for employment of foreign workers in the tourism sector to 15.611 permits this year. If we look at the interest of the unemployed to work in the tourist season according to the CES, the interest in Osijek, as well as one of the insurers (foreign labor), this season should still significantly reduce the problem of labor in tourism. After Osijek, the Job Days in Tourism will be held in Zagreb on January 25 and in Split on February 1, and approximately 10.000 visitors, unemployed persons, students, final grades of vocational schools and others interested in seasonal employment in tourism are expected at each location. .
“Constant investment in the offer, listening to what guests need and want, positioning Punta Skala as a sports and ecological resort, investing in human resources – all this has obviously borne fruit. Awards like this are not only extremely flattering and pleasing, but they are also a great wind in the back for the future, an incentive to be better and more innovative in the future. ”, says Georg Unterkircher, general manager of Falkensteiner Punta Skala resort. Hotel & Spa Iadera was also awarded on the portal Hotels.com in the Luxury winner 2019 category, and the same portal also awarded the Falkensteiner Family Hotel Diadora in the Beach winner 2019 category. In addition, Diadora is on TripAdvisor and entered among the top ten family hotels in Croatia, HolidayCheck ranked it among the most popular hotels in the world, and Booking.com awarded the Guest review awards 2018. This title takes at least 5 consecutive years to win a Holiday Check Award. Also, for this year’s awards for the most popular hotels in the world, HolidayCheck has taken into account the opinions and reviews of more than 950 thousand hotel guests. The HolidayCheck portal is visited by 20 to 30 million users a month who write about 10 million comments and reviews about destinations and accommodation. HolidayCheck has officially presented the Falkensteiner Hotel & Spa Iadera as this year’s winner of the prestigious “Holiday Check Gold Award 2019”Awards given in various categories based on guest reviews and ratings by one of the world’s leading portals for travel and accommodation reservations and reviews.
As part of the final conference of the project “Lazareti – the creative district of Dubrovnik”, on Sunday, July 28, the grand opening of the renovated historic complex Lazareti was organized. Now, after a thorough renovation, Lazareti has received a new life cycle through the valorization of cultural heritage as a place of cultural and tourist facilities. Mihaela Skurić, director of the Institute for Reconstruction of Dubrovnik, the main partner in the project, emphasized that this is the first project of the City of Dubrovnik in which funds from European funds are invested in the restoration of cultural heritage and giving new function and purpose, ie life to heritage. local communities. The Lazareta complex, located right next to the city walls in Ploče, the eastern entrance to the historic center, in the past served as a quarantine (French quarantine: forty days), an international anti-infective measure that separates and controls people, goods and means of transport (ships) they are suspected to come from infected areas. In Dubrovnik, as early as 1377, the Grand Council issued a provision according to which newcomers from plague areas had to spend a month in certain supervised locations before they were allowed to enter the city. Although there have been several quarantines in Dubrovnik throughout history, Lazareti (whose construction was completed in 1647) was the largest commercial transit center on the Adriatic and one of the best organized quarantines in the Mediterranean in the 17th century. In the past, the eastern suburb of Ploče was a meeting place for trade caravans and travelers from the Ottoman Empire. Therefore, as early as 1377, the first quarantine for the isolation of passengers and goods from eastern countries was built in Ploče, because epidemics of infectious diseases often prevailed. The infirmaries, with 8 preserved buildings and 5 courtyards, were renovated in 1623 from the sea side so that larger ships could approach. They had spacious warehouses for goods and livestock, and rooms for longer stays of merchants and travelers in isolation. In the 17th century, Dubrovnik’s Lazareti was the largest commercial transit center on the Adriatic and one of the best organized quarantines in the Mediterranean. The project is worth HRK 33,8 million, of which as much as HRK 25,9 million was provided from European Union grants through the European Regional Development Fund. HRK 21.078 was spent on the renovation of three previously unrestored ships, while other funds were intended for equipping seven ships that have already been renovated, as well as for developing and designing cultural programs and facilities. As the future cultural center of Dubrovnik, Lazareti fully fit into the vision of sustainable destination management and through the valorization of cultural heritage sites and the expansion of cultural and tourist facilities is expected to make a major contribution to sustainable development at the local and regional level. In addition to the City of Dubrovnik, ten other partners participated in the project – the Institute for the Reconstruction of Dubrovnik, DURA, the Dubrovnik Tourist Board, the Linđo Folklore Ensemble, the Lazareti ART Workshop, the Lero Student Theater, the DEŠA Association, the DEŠA Social Enterprise and the Dart Association, and Art Sebastian Design. “The opening of the Lazaret is seemingly a small step for our city, but it is extremely important and full of symbolism. It is the year 2019 of culture, when we celebrate many anniversaries and we can finally say – Lazareti are over. We know how and in what way to take care of our historical heritage, we have EU funds at our disposal and we have just shown that we know how to use them, that we know how to manage EU money and invest it in what is important, and that is caring for our heritage. It is up to us to move on”, Said Mayor Mato Franković at the opening of the Lazaret. Source / photo: City of Dubrovnik
Five people were educated through this program of education of the hotel concierge for people with disabilities, which was conducted by the Uristica catering school Split in cooperation with the Hotel Cornaro in Split. About 10% of travelers, tourists in the world are people with some kind of disability, but in the hotel industry their specific needs are not adequately recognized. Slaven Škrabić, professor at the Split school and project manager The Fit4Work project involved 45 unemployed people and the implementation lasted 20 months. In order to realize it well, 12 teachers from TUŠ, two mentors from “Bluesun – Hotel Company Tučepi”, two mentors from the hotel “Cornaro” and a representative of the association for inclusion “Lastavice” participated. ” It is very important that tourism workers think about the needs of people with disabilities. For example, when a hotel guest requests a personalized tour of Diocletian’s Palace, the hotel’s Concierge services contact an outside agency, a guide greets the guest at the agreed location and the tour begins. In this case, Concierge services can not only leave the guest to the guide, but will meet with him beforehand and together determine the route of the tour, taking care that the guest is picked up by an adequate vehicle, to go to locations where it is not too crowded and to there will be no architectural barriers on the way ” explained the project manager Slaven Škrabić, a professor at the school in Split. Tijekom studijskog putovanja u London mentori su imali priliku vidjeti kako funkcionira tamošnji sustav, dodaje Škrabić, te naglašava kako je u Engleskoj svijest o važnosti zapošljavanja osoba s invaliditetom viša, poduzetnici nemaju olakšice već zapošljavanje osoba s invaliditetom shvaćaju kao ulaganje u društvo i upravo je to razlog zbog kojeg je neophodno ulagati u podizanje svijesti o važnosti zapošljavanja ranjivih skupina kako bi s godinama ona i u našem društvu porasla. Praktični dio edukacije za četiri smjera odnosno barmen / barista te pomoćni konobar, kuhar i slastičar polaznici projekta odradili su u Bluesun hotelu Alga u Tučepima. “Naši dojmovi su odlični. Bilo nam je zadovoljstvo sudjelovati u inkluziji ranjivih skupina na tržište rada. Polaznicima smo prezentirali hotelski dio usluge i potrebne stručne vještine kako bi stekli direktno iskustvo rada u realnom, svakodnevnom poslovanju. Sudjelovanje u ovakvim projektima tvrtkama nije važno isključivo u kontekstu društveno odgovornog poslovanja već je to općenito prednost za cijelo hrvatsko gospodarstvo” pojasnio je Filip Benjak, voditelj razvoja karijera u Bluesun hotelima. But most importantly, the Fit4Work project ultimately resulted in employment in the sector for more than half of the total 45 attendees, and within a few months. Hotel concierge training for people with disabilities held for the first time in Croatia For this reason, in the School of Tourism and Hospitality Split this year realized a project, Fit4Work designed by the school and aimed at training long-term unemployed people over 54, people with disabilities and young people who were not previously associated with hospitality and tourism. The implemented programs were related to the professions of assistant chef, board waiter, board confectioner, bartender / barista and one very specific specialization – hotel concierge for people with disabilities. “Neophodno je da bar jedan hotelski djelatnik bude educiran o ovoj temi. Edukacije za conciergea za osobe s invaliditetom pruža vrlo konkretna znanja s brojnim primjerima iz prakse i nastavljamo je provoditi u našoj školi” zaključio je voditelj projekta Slaven Škrabić Cover photo: Pixabay.com
Categories: Editorial, OpinionSen. Dianne Feinstein has announced that she’ll be running in 2018 for a fifth term, and since she’ll be 85 next year, that would mean if she wins she’d serve until the age of 91, putting her in a select club. Only four senators in history have served past the age of 90.Meanwhile, the top Democratic leadership in the House is getting a bit long in the tooth as well:Minority Leader Nancy Pelosi is 77, Minority Whip Steny Hoyer is 78, and Assistant Democratic Leader James Clyburn is 77.Last week Rep. Linda SÃ¡nchez, herself a member of the leadership team, said: “I do think it’s time to pass a torch to a new generation of leaders, and I want to be a part of that transition.”So do the Democrats have an age problem at the top that needs fixing?The answer is “Yes, but. . .” There are good reasons why all those leaders might step aside, or at least begin preparing to do so.But it’s also critical to understand that the Democratic Party can’t decide that it’s time for them to go, because the Democratic Party isn’t an entity with a singular will. California uses a “jungle primary,” in which all primary candidates run on one ballot and the top two finishers – usually two Democrats in statewide races – face off in the general election.That means that to win, an opponent would have to beat Feinstein twice.But it hardly seems insurmountable – her approval ratings are reasonable but not great, and she’s not the kind of politician who inspires fervent affection.So what it would take to oust her is an opponent (or opponents) willing to take a risk on upending the status quo.That applies to the House as well, though there the situation is somewhat different.Nancy Pelosi has said that if Hillary Clinton had won the 2016 election she would have retired, but she’s sticking around to fight Donald Trump.Those who understand Congress will tell you that Pelosi has been one of the most capable and effective party leaders in American history, both in the opposition and the majority. If a new generation is going to step forward, individuals are going to have to make their own decisions to do so.Let’s start with Feinstein.While she still seems to have her wits about her, it’s just not practical to think that someone in his or her late 80s and even early 90s can function with the effectiveness he or she did when younger.It’s true that Jerry Brown, age 79, is carrying out one of the most vigorous and consequential governorships anywhere in America right now, but even 79 is different from 91.And there’s another reason beyond age that California Democrats might look to someone besides Feinstein: she has long been one of the more conservative Democrats in the Senate despite representing the state that defines contemporary American liberalism.If you’re a California liberal, you don’t have to worry about her age to think that someone else might be a better advocate for your views.There are Democrats considering running against her, including Kevin de Leon, who is currently the president pro tempore of the state senate. It’s not exactly persuasive. And the “Pelosi should step aside because Republicans air ads mocking her” argument is idiotic; no matter who leads the Democrats, they’ll be denigrated and demonized by the GOP as sure as the sun will rise in the east tomorrow.In short, Democrats should be looking for new leadership, but not because they need to do it if they’re going to win in 2018 and 2020.Both of those elections will turn mostly on how Americans feel about Donald Trump.They should do it because they’ll have to eventually no matter what, and it’s never too early to start preparing.But if it’s going to happen, younger Democrats are going to have to take a risk, step up, and convince people that they’re capable of carrying the party forward.Paul Waldman is a contributor to The Washington Post’s Plum Line blog and a senior writer at The American Prospect.More from The Daily Gazette:EDITORIAL: Thruway tax unfair to working motoristsEDITORIAL: Beware of voter intimidationEDITORIAL: Find a way to get family members into nursing homesEDITORIAL: Urgent: Today is the last day to complete the censusFoss: Should main downtown branch of the Schenectady County Public Library reopen? But if there’s one glaring failure in her tenure it’s the fact that she hasn’t effectively prepared a line of succession.This happened at a time when, as Paul Glastris and Haley Sweetland Edwards described in 2014, power in the House had become more centralized in the leadership, leaving members fewer opportunities to advance on their own without the blessing of those atop the hierarchy.That’s why Pelosi ought to start preparing the transition now, by announcing that she’s going to stick around through the 2020 election and then retire.It would allow Democrats to continue to rely on her through Trump’s term, when the unity that she has been so good at maintaining will be vitally important.And it would give ambitious younger members the chance to begin making their case, both privately to their colleagues and publicly to the party’s rank-and-file, for why they ought to lead the party in the House.And they need to make the case, because to date they haven’t.The only member of the House who has really tried is Tim Ryan of Ohio, whose argument comes down to “I’m from Youngstown where lots of working-class white people live so I should be a party leader because Youngstown white people Youngstown.”
It was only added during the reconciliation process, gives owners of income-producing real estate holdings a way around that safeguard, effectively creating a new tax break for large landlords and real estate moguls.”This specifically lines the pockets of the ecosystem of corruption that Trump calls a family.It also lines the pockets of people like Sen. Bob Corker, who mysteriously “coincidentally” switched his vote from a no to a yes on the bill after the language was added.America must make an honest appraisal: Donald Trump is a plutocrat masquerading as a populist.He is a pirate on a mission to plunder.Trump is milking the American presidency for personal gain.If he can give the impression of compassion on his mission to cash out, all the better for him, but the general good, the health of the nation and the plight of the plebeians is not now nor has it ever been his focus. And yet in this budget, they willingly, willfully exploded the deficit, not for public uplift or rebuilding America’s infrastructure but rather on the spurious argument that giving truckloads of money back to businesses will spark their benevolence.According to the government’s own nonpartisan Congressional Budget Office, the tax bill will lead to “an increase in the deficit of $1,455 billion over the next 10 years.”But be sure, when this bill leads to these predicted deficits, Republicans will return to their sidelined deficit rhetoric armed with a sickle, aiming the blade at the social safety net, exacerbating the egregious imbalance of the tax bill’s original sins.That’s the strategy: Appease the rich on the front end; punish the poor on the back. Feed the weak to the strong.The callousness of this calculation is hidden in the arguments over estimates and evidence, but it is not lost Most Americans see through this charade.According to a CNN/SSRS poll released this week, most Americans disapprove of the tax bill. Furthermore, most believe the bill will benefit the wealthy, in general, and Trump and his family, in particular. His ego is too big for egalitarianism, and his heart too small for it.So he sticks closely to what he knows, the brand of Trump: promoting it, positioning it, defending it and enriching it.Republicans in Congress rushed the bill through for other reasons: to combat the fact of their own legislative incompetence, to satisfy their donors and to honor their long-held belief that the rich are America’s true governing force.The middle class and the poor were never at the heart of this heartless bill.They are simply a veneer behind which a crime is occurring: the great American tax heist.Charles M. Blow is a columnist with The New York Times.More from The Daily Gazette:EDITORIAL: Beware of voter intimidationEDITORIAL: Urgent: Today is the last day to complete the censusEDITORIAL: Find a way to get family members into nursing homesFoss: Should main downtown branch of the Schenectady County Public Library reopen?EDITORIAL: Thruway tax unfair to working motorists That, too, was a lie.In September, The New York Times estimated that “President Trump could cut his tax bills by more than $1.1 billion, including saving tens of millions of dollars in a single year, under his proposed tax changes.”That was before the bill was passed and reconciled, when the deal got even sweeter for Trump.As The International Business Times reported this week:“The reconciled tax bill includes a new 20 percent deduction for so-called pass-through entities, business structures such as L.L.C.s, L.P.s and S corporations that don’t pay corporate taxes, but instead ‘pass through’ income to partners who pay individual tax rates on that money.The Senate version of the bill included safeguards that would only allow businesses to take advantage of the new break if they paid out significant wages to employees.But the new provision, which wasn’t included in either version of the bill passed by the House and Senate. Make no mistake: No matter how folks try to rationalize this bill, it has nothing to do with a desire to help the middle class or the poor.This is a cash offering to the gods of the Republican donor class.This is a bill meant to benefit Republicans’ benefactors. This is a quid pro quo and the paying of a ransom.Trump promised to drain the swamp. That was another lie among many.He and the Republicans are in fact feeding us to the gators.Last month at a rally in Missouri, Trump said of the tax bill, “This is going to cost me a fortune, this thing, believe me.” He continued:“This is not good for me. Me, it’s not so — I have some very wealthy friends. Not so happy with me, but that’s OK. You know, I keep hearing Schumer: ‘This is for the wealthy.’ Well, if it is, my friends don’t know about it.” Categories: Editorial, OpinionWith their tax bill, Donald Trump and the Republicans are raiding the Treasury in plain sight, throwing crumbs to the masses as the millionaires and billionaires make off with the cake.America should be aghast not only at the looting but also at the brazenness of its execution.It seems that for as long as I can remember, Republicans have been wringing their hands about deficits.
So far, so pessimistic.But the United States has a history of defying gloomy predictions.Economists predicted “secular stagnation” in the 1940s, right before the 1950s boom, and today there are signs that Fed estimates of R* are too cautious.Jason Cummins, the research chief at a major hedge fund and a candidate to lead the New York Fed, points out that capital expenditure is recovering; expectations of capital expenditure are soaring; and the personal saving rate has fallen back to its pre-crisis low.In Washington, the Trump tax cut means that the government saving rate is falling dramatically as well: We are back on the path to a trillion-dollar deficit.Meanwhile in Silicon Valley, some venture capitalists are shifting to capital-hungry projects — medical robotics, next-gen nuclear fusion, satellites and so on.Globally, healthy economies have dulled investors’ urge to park money in the United States because of its safe-haven status. All of which suggests that savings in the United States will be less abundant, demand for them will be more abundant, and the natural interest rate will move higher.Unless markets suddenly reverse themselves, the recent bondcano probably reflects an awakening.When investors revise up their view of interest rates, bond prices tumble.For many professional money managers, these may well be scalding times.But for the economy as a whole, a higher R* would be a sign that the post-2008 malaise is finally healing. Sebastian Mallaby, author of “The Man Who Knew: The Life & Times of Alan Greenspan,” is the Paul A. Volcker senior fellow for international economics at the Council on Foreign Relations and a contributing columnist for The Washington Post. More from The Daily Gazette:EDITORIAL: Urgent: Today is the last day to complete the censusEDITORIAL: Find a way to get family members into nursing homesFoss: Should main downtown branch of the Schenectady County Public Library reopen?EDITORIAL: Thruway tax unfair to working motoristsEDITORIAL: Beware of voter intimidation No matter how many jobs the economy created, many feared it would never return to the pre-crisis condition in which buoyant hiring could coexist with decent returns for savers. This pessimism has been most evident among Federal Reserve leaders.Members of the Fed’s monetary committee regularly publish their views of the appropriate long-run interest rate, known as “R*” in the jargon.This is the interest rate that the economy needs to achieve stable inflation and maximum employment.A high R* is generally good news: It means that businesses want to borrow and expand aggressively, so you can get to full employment even when interest rates are relatively high.Workers can do well even as savers do well.Think back two decades, when unemployment was low, wages were rising and savers enjoyed a risk-free 5.5 percent return on their money. Categories: Editorial, OpinionWall Street is always quick with colorful disaster metaphors, and the latest market convulsion has already been dubbed the “bondcano.” The bad news is that, in the judgment of Fed leaders, R* has come down sharply. Since 2012, the median estimate of the long-run interest rate published by monetary committee members has fallen from a bit over 4 percent to under 3 percent — this means that, stripping out inflation, the estimate for the real interest rate has collapsed by about two-thirds.Businesses seem unexcited about borrowing and investing, the Fed chiefs are saying. Interest rates will have to stay low to generate full employment.For anyone with a retirement fund, this is a grim prospect.The lower the return on savings, the more you have to set aside to afford retirement.For the past several years, admittedly, this truth has been obscured: Stocks have had a glorious run as low interest rates have chased savings into the markets.But that portfolio shift is probably over, and may well have overshot. From here on out, workers seeking to build up their retirement funds may have to save more and work longer. But a little lava spillage can be a hopeful sign.LATEST: Wall Street ends day higher, halting global routFor the first time since the financial crisis of 2008, a strange cloud that has hung over the economy may finally be lifting.By most measures, the economy has performed well since 2008.The recovery has so far lasted for 103 months and will soon rank as the second-longest post-war expansion.GDP is up by 2.5 percent over the past year, not bad for a graying society; unemployment is at a rock-bottom 4.1 percent.But an uneasy feeling has haunted the celebration. How did the economy get stuck in this rut?The gloomy estimates of R* reflect a conviction that, even before the 2008 shock, powerful forces were pushing down on interest rates. The aging of the baby boomers boosted the saving rate.So did the rise in inequality — more of the national income was flowing to people who could afford to save it.The growing supply of capital was met with falling demand for capital, pushing down the natural interest rate further.Slowing productivity gains suggested that there were not that many great machines that businesses wanted to buy — hence sluggish business investment.Even the exciting breakthroughs in Silicon Valley were not capital-hungry.You can launch a ride-sharing company or a digital coin without buying much machinery.
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