Are babies born naked?

Periodically, my sister emails me conversations she has with her kids.  Last week she sent the following email:

AUSTIN:  Mommy, when you’re born are you naked or do you have clothes on?

MOM: Naked, Austin. Everyone is naked when they are first born.

AUSTIN:  Giggle. Giggle… Isn’t it so funny that everyone is born naked? Is it awkward?