You'll Never Believe How Much Money the Royal Baby Will Bring to the British Economy
Forget about trickle down economics or tax cuts. The birth of the Royal Baby appears to be the quickest way to stimulate the British economy. According to Reuters, analysts say the hype around the birth of the future monarch could jumpstart the British economy by 240 million pounds, or up to $400 million.
Dutchess Middleton, a fashion and style icon, is so popular that she has already given rise to the "Kate-effect," a distinct ability to make any product a much sought-after consumer good. Now, shoppers are already going crazy for products surrounding the birth of the unborn royal child. When Victoria Beckam selected an iCandy peach baby carriage for her child, sales of the stroller grew from £3.6 million in 2009 to to £9.6 million in 2011. Per usual, Kate will be a trendsetter. Expecting mothers will be sure to stock up the baby gear she selects and dress their babies in the clothing she chooses for her child.
Baby pajamas modeled on a guardsman's outfit are just one example of products and goods being sold by palace shots, spurred by the birth of the Royal Baby. The Royal Family itself is taking part in the fad; Prince Charles is selling handmade baby shoes while Kate Middleton's parents have plans to sell a variety of baby products in their party goods company, according to Reuters.
Sales are even expected to catalyze spending in the U.S., where Americans are equally as fascinated with the Royal Baby as those across the Atlantic. According to Joshua Bamfield, director of the Centre for Retail Research, "The younger royals are very well thought of in the United States, so we are expecting good sales of souvenirs."
In addition to consumer goods, celebrations around the birth could bring in additional revenue. According to Bamfield, the British will spend an estimated 62 million pounds on alcohol and 25 million pounds of food in order to ring in celebrations for the future heir. Plus, analysts expect that the Royal Baby's birth will boost tourism to Great Britain.
This is not the first time, however, that British royal events have brought in the big bucks. For instance, U.K based department store Debenhams saw their sales lifted 1.4 percent spurred by Queen Elizabeth II's jubilee celebration.
According to CNBC, the Royal Baby will be "'overwhelmingly positive' for the U.K. economy," well before he or she even takes the throne.