👑 How Do the Royals Afford Royalty?
The Royal Family has always made the news whether it be for their lavish weddings or for their sad demise. But have you ever wondered how they manage to earn their keep? Here's how.
London Eye, Buckingham Palace and the Queen.
That's probably what you think of when you think about London.
But now that Queen Elizabeth is no more a lot of people are raising questions about whether the UK should still continue its constitutional monarchy system.
They claim that the Royal Family is a drain on the country's resources. But is that really so? Let's find out!
🤔 How the Royal Family Earns Money
First let's clarify what exactly it is that the Royal Family does (yes, they do have a job).
The Queen/King is like the President of the UK and has to officially appoint the government, the head of the state, sign bills and conduct a lot more official duties. However, they don't have a say in who is appointed or whether a law can pass or not.
They are just there to put their signature on paper as the official head of state.
Sounds like an easy job? Well it isn't.
The Royal Family as a whole also have to attend over 2,000 official ceremonies, host 70,000 people and write over 100,000 letters.
Wondering how much they are paid for all this?
That depends on how much they earn.
You see, the Royal Family isn't just there for signing documents. It also earns a lot of money for the UK: $2.7 billion/year to be precise.
They do this by boosting tourism (duh), and by keeping the UK in the news.
Prince Harry and Meghan's Markle's wedding alone gave the UK economy a boost of $1.5 billion! And you thought Indian weddings were crazy.
And then there's another secret weapon that the Royal Family has: royal warrants.
These are kind of like endorsements by the Queen, highlighting that a brand is great, but unpaid of course.
And companies like Aston Martin, Cartier Diamonds and Twinings Tea all have received this endorsement and it has helped boost their revenue by 10%!
So, you can understand the impact the Royal Family has had on the UK economy.
And that's not all. All of the money that the Royal Family earns from tourism goes directly to the UK Treasury. The Royal Family only gets 15% of the money (now 25% to pay for the costs of the renovation of Buckingham Palace).
In 2021-22, the Royal Family received £86.3 million (£1.29 pounds per UK citizen), which means they earned 4x of that for the UK economy in total.
But that's just a tiny part of the Royal Family's income and is only used for official purposes (except security).
The Queen's personal income came from the Duchy of Lancaster (a set of land and estates held by the Royal Family). Her son Prince Charles' (now King) personal income comes from the Duchy of Cornwall. Prince William also gets a stipend from this income.
Basically, these lands and estates are leased out by the Royal Family to earn a decent amount.
So, it seems the Royal Family is doing well on its own, right? They are helping the UK economy rather than burdening it.
That's where we are wrong.
You see, the 25% of income that goes to the Royal Family is absolutely unnecessary. If the UK had another head of state their salary would cost much less. And the beautiful palace and other estates would probably bring in the same amount of taxes to the UK government.
Also, the UK wouldn't have to bear $434 million in security expenses: an amount almost equivalent to the earnings of the Royal Family (the Royal Family earned $475 million in 2020).
What's more, they could also get higher taxes and earnings from the estates of the Duchy of Lancaster and Cornwall, which they currently don't.
That's why many believe that even though the Royal Family earns the country a lot of publicity, it is time to bid them goodbye.
According to a YouGov survey, 41% of people aged 18-34 want a President instead of a King/Queen.
Especially because a shift in power is going to cost taxpayers' money. They will have to pay for the coronation ceremony, a new set of banknotes featuring King Charles and what not.
But enough about the UK. Have you ever wondered how our Royals earn their money?
🧐 How the Indian Royals Do It
Compared to the UK, Indian royals are much more self-sufficient.
Most of them have inherited lavish palaces and assets worth crores, which are still funding their luxurious lifestyles.
But some have foregone the comfort of the gaddi and become full-on entrepreneurs.
For instance, Arvind Singh of the Mewar Dynasty has launched the HRH Group of Hotels.
The Wadiyar Dynasty of Mysore has also launched a successful silk business called Royal Silk of Mysore.
Many others, like the Royal Family of Jodhpur, have stuck to leasing their existing palaces to hotel chains.
And several Indian princes and princesses have chosen to represent India in the field of sports. Like Mansur Ali Khan Pataudi (cricket), Padmanabh Singh (polo) and Rajyashree Kumari (shooting).
Some like the Royal Family of Rajkot have even invested in hydropower plants and biogas plants.
But no matter how self-sufficient, all of these royals have received thousands of crores of wealth that was created by taxes that our ancestors paid. So, should their palaces still be their personal property or should they go to the government? Let us know your thoughts!
⚡In a line: The UK royal family earns a lot of money for the country but it also drains its resources which is why many now want its reign to end.
💡Quick question: Will the UK ever abolish monarchy?
Share this with your friends via WhatsApp or Twitter and help us grow! See you tomorrow :)
You can also listen to our stories. Catch it on Spotify, Apple Podcast, Amazon Music, Google Podcasts, Gaana or Jio Saavn.
If you are coming here for the very first time: Don’t forget to join us on WhatsApp to get daily updates! 👇