Now, I have nothing but the best wishes for William and Kate and their new son, but I have to ask, does anyone find the idea that the birth of a baby, even a royal baby, boosting the economy by around $400 a bit absurd? Granted, I do not deny that the British Royal family is a powerful marketing tool; my mother, who like many women has a predilection for all things royal, has ceremonial wedding dolls of William and Kate. Yet the idea that the economy is actually boosted by one individual, an event or some such is just too hard to take seriously.
Yes memorabilia will see an uptick in sales, however, this is a one time thing, which is even admitted by the researchers, and one thing that consistently seems to be ignored by the newspapers is the concept of 'opportunity cost'. How much of the memorabilia, programs, events and other items that are sold actually generate a profit that is higher than the item/event that was not created/put together in order to capitalize on the royal baby frenzy? Frankly, I don't know, and perhaps there is an actual boost to the economy, but I am of the opinion that we should ignore one time events - (short of a Katrina/2004 Indian Ocean Tsunami event).