Fourth American economic and social cycle. Ronald Reagan, symbol of this era, breaks the previous patterns. High taxes made new large investments impossible. Reagan breaks the vicious cycle by lowering taxes and increasing the amount of money in circulation. Corporations modernize the economy through heavy investment. The economic heart shifts from cities to suburbs, and the economy shifts from industry to services. This cycle, like its predecessors, will reach a crisis point, where the logic that allowed it to prosper will no longer hold, and the foundations for the next cycle will be laid.
