You might have noticed that the prices for your fast food meal have been going up lately. There’s a blame game going on, but in the end, you are paying for it.
That Happy Meal probably doesn't make you happy when you wind up paying the bill. The fast food industry says costs are up because of the government's support of biofuels like ethanol. Lone Star College economics professor Hank Lewis says they are on to something.
“Farmers have had to plant less crops. Corn prices have gone up. It’s a contributing cause,” Lewis told KTRH
But Steve Pringle of the Texas Farm Bureau says blaming ethanol and corn farmers isn't fair.
“We had a spike in prices for a while last year, but now those prices are back down,” Pringle explained.
Pringle said if there is any one thing to blame, it should be transportation costs.
“Everybody knows how gas prices have gone up in the last ten years. It affects everybody. The fast food industry is no exception to that. They have to truck their products,” Pringle told KTRH.
And Lewis said there is one other factor not many are considering.
“The American beef herd is down to their lowest level ever. But demand hasn’t changed. That drives prices up,” Lewis said.
The value meal that once cost you $2.99 dollars now tops out at $6.39 before taxes.