Sure, any In 'n Out Burger employee can make a wrap skirt with a dish towel and a big-ass safety pin. But it only lasts to the end of the shift.
But if you're in need of some seriously cheap baby clothes, there is apparently an entire online subculture devoted to making outfits from dollar store dish towels.
OK, maybe just two posts on two blogs, but still. Neither one has a pattern; and if you don't have a needle and thread, you could probably get by with a glue gun or maybe a stapler. So easy!
Make Baby Pants From Dish Towel [dollarstorecrafts via craftzine, thanks dt reader eric, who actually sent that Craft link along because it has a creepy, chocolate Frank The Bunny.]
Tea Towel Skirts [filthwizardry]