Those who live in the community at this time have a vested interest in reinvesting in their public, private and domestic fixed assets such as streets, stores, phone systems and homes. The resulting efforts lead to further expansion of all facets of the community. The next phase occurs when the driving of the growth and development phase has ceased to propel the community forward. This is the stagnation phase . The stagnation phase also may appear to be a stability phase.
Stability is a temporary state in the community's life cycle.
Something usually comes along to upset the status quo. It could be a natural disaster like a tornado, an economic disaster like a factory closing, declining wheat and oil prices, or a change in modes of transportation. Positive forces can, however, come along to reenergize expansion. If the change that upsets the stability is negative, then next comes the retrenchment phase . In this period the actual economic vitality declines as the value of locally produced goods and services diminishes.