Peter Morici

Top private universities and a few elite public institutions have a lock on most good paying jobs for graduates. Those have boosted tuition far more rapidly than even health care costs. That sets the pace for other schools, and Federal policy is not to intervene in their monopoly pricing.

Federal regulations permit prescription drug manufacturers to charge much higher prices than in Europe but don’t permit consumers to legally import drugs and force competition.

4. The Barbell Economy Will Get Worse

Harvard MBAs and Stanford engineers are doing great but adults who lost good jobs in the recent recession remain stuck stocking shelves at local groceries or dependent on family and government benefits.

For most workers lucky enough to have full-time jobs, wages remain stagnant. Those purchase even less gas, food and other essentials with more inflation.

5. A Higher Minimum Wage Will Only Make Matters Worse

The Congressional Budget Office estimates that the president’s proposal to increase the minimum wage will destroy up to 1 million jobs.

Some restaurants and similar establishments will shutter, while others will rely more on machines similar to those used at some supermarket check outs.

Although those that hold minimum wage jobs will earn more, all those extra unemployed workers will drive down wages of workers earning near the minimum. Team leaders at McDonalds will have fewer people to supervise and end up accepting only the minimum to work.

Peter Morici is an economist and business professor at the University of Maryland, national columnist and five-time winner of the MarketWatch best forecaster award. He tweets @pmorici1

Peter Morici

Professor Peter Morici is a recognized expert on economic policy and international economics. He has lectured and offered executive programs at more than 100 institutions including Columbia University, the Harvard Business School and Oxford University.