Gender Lens Investing

Chapter 2It's the Women, Stupid

“Essentially all of the income gains that middle-class American families have experienced since 1970 are due to the rise in women's earnings.”¹

—Economic Report of the President, 2015

James Carville, political strategist for Bill Clinton's presidential bid in 1992, famously coined the phrase, “It's the economy, stupid,” a campaign rallying cry that focused the election on the ailing U.S. economy and the attendant need for political change.

In the same vein, “It's the women, stupid” challenges investors to look beyond the battle of the sexes and recognize that women are distinct economic forces in the world. The expression speaks to the fact that women everywhere are increasingly defining the social, political, and economic agendas of nations and the future of the planet. This book isn't making a case for this as the right thing; we're focusing on what makes it, inarguably, the smart thing.

Revitalizing economic activity is needed everywhere in the world. Almost a decade after the Wall Street financial crisis of 2008 brought the global economy to its knees, the countries that account for most of the world's GDP are still struggling to stand upright. Despite unprecedented levels of cheap liquidity from central banks, and multiple fiscal and monetary measures to promote growth in economies large and small, the global economy's recovery remains fragile. The standard pro-growth policies are not working.

Post-crisis annual U.S. GDP growth has been the ...