Thanks.
How about the 2008 Recession? Will it still happen?
Eventually. If you build a house of cards big enough, at some point a wind will catch it. And that's what was done in roughly the years 1998-2008, by which starting time companies like Enron were getting going (how to make pretend money on speculation and use market-cornering tactics to wring profits out of jacked-up rates across entire regions.) Mortgage lenders were beginning to wonder just how much money could they make off this housing boom. And the repeal of Glass-Steagal that Republicans had salivated for since the Nixon years finally had both a solidly Republican House and not just a biddable Senate but a politically endangered President who could (a) get a lot of Wall Street lobbyists to contribute to his own campaign funds and his party's and (b) get a Congress that had tried to impeach him off his back a little, which could finally make it happen. There were so many players: this is not just an AH.com "let's change this factor and see how many things we can throw out of whack" deal. There were a lot of people with a lot of current or potential money who would do a lot to make this exact climate of high-risk speculative investment, adrenaline-rush, wealth-addiction, corner-cutting, moral-hazardous, financial-instruments focused economy of making a big fucking killing and devil take the hindmost, happen. This is not "butterflies" like we toss around the term here. It was forty thousand Monarchs hovering over a meadow in California, beating their wings in unison to make a mighty wind like the breath of God, sort of a thing. Like I say too much, there are butterflies but there are also trends. This was a TREND.
In the 1980s Democratic Revolution TL, Glass-Steagal repeal and mass deregulation of financial instruments and some sort of omnibus tax-cut system for investment and capital gains will be early legislative work for the pendulum-swing moment, when a Republican president finally comes back in with probably a Republican Congress along with him (something more like the shift in the UK when Blair's "New Labour" swamped the Tories after their eighteen years in power, rather than the back-and-forth of the Nineties and Aughts before 2008 and 2010 gave us two years of legislation and six years of civil-war gridlock.) You can start the clock then, and probably there will be some tendencies and habits of business practice that took hold even before that, and are now off the leash. From there you can give it about ten to twelve years before something big exposes the fact that a whole lot of your "economic growth and prosperity" is basically fraudulent transactions based on, and making more, artificial money that will disappear in a puff of margin calls leaving people holding the debt. That is the limiting case on the pendulum-swing Republican era after the 1980s Democratic Revolution era carries on (if they're lucky in the timing of the economic recovery around '92) through to the Nineties.
And really, the Democrats had better hope it is. Things could've gone differently in Ohio in 2004 IOTL. That would have created a Trump situation (or a Ford Wins in 76 situation like the one that launches this whole 1980s Democratic Revolution because it (1) damns the GOP for the pain of the Seventies and (2) gets a Democrat who is not Jimmy "coherent economic policy? What's that?" Carter into office.) You'd have John Kerry winning the Electoral College while losing the popular vote by nearly two percent, which is a bad place to start in the very heyday of the Great Right-Wing Media Machine when every Hallmark store book stall was covered in titles by Ann Coulter and a boyish Glenn Beck. It's also less likely that the Democrats retake Congress even if they make some countercyclical gains. (It was New Orleans, Iraq, and the threats to privatize Social Security that brought the '06 Democratic wave -- that and a DNC Chair with the wit to actually fight for every Congressional seat. It's not rocket science, guys. Looking at you, Tony Perez. Remember this next year.) So if the market falls down and goes boom in '08, whether he reacts better to it or not (and, to be fair, Paul O'Neill who I will respect until the day I die fought against every orthodox-conservative economic instinct in his body and saved the global banking system even IOTL, with Dumbya in the West Wing), whether he has been trying to prevent it against a Republican Congress shouting "gimme! gimme! gimme!" or not, will be blamed when it happens. You want to be absolutely sure that the people who caused the problem are holding the bag. This was the case in 1932. It was again in 2008. We as a country might have been luckier if more taint of corruption had struck sooner with Grant, bringing in B. Gratz Brown (Greeley got so close...) and ending Reconstruction four years earlier, or if Johnson had run and won in '68 disrupting it from the start, so there was a chance of a liberal Republican nominee in '72 or '76 to try and put things right, rather than a Stalwart ready to trade black Americans' freedoms for a four-year gig. It's important that people get to own what they've caused.
That is the "catastrophic success" of the Democrats in '76. The Democrats had been seeking a preacher, a prophet, a maker-right-of-the-nation's-soul since at least '68. They went for it with Bobby where people tore at each other to touch the hem of his garments, the left went for it in force with McGovern in '72 caucusing their way to victory but without a plurality of the party popular vote, and for the first two thirds of the primary season and again for a period around the convention in the summer, they went for it whole hog with Jimmy Carter's big smile, his meritocratic story, and his seeming ethical purity. He nearly blew it and in grand historical terms it would have been better if he had despite the good things he did do at various points in his presidency and the talented people he brought into service around him. He had absolutely no feel for the substance of economic policy or the human consequences of economic policy. And that was precisely what was needed to put right the pains of the Seventies, not just someone who would never lie to you because Watergate. The Republicans needed to be left holding the bag for their decade worth (as it bled over into Carter's presidency) of economic mismanagement (the Nixon Shock, all Burns' loose money, the half-assed price controls, the half-assed mix of Friedmanite free-marketeering and budget orthodoxy, the lack of a coherent policy on energy or on restructuring the steel industry, etc.) and bad foreign policy choices (dragging out Vietnam, suborning and supporting crypto-fascism throughout the Americas, radically escalating our support for the Shah while his "White Revolution" crumbled under him, having no coherent vision for Africa besides stopping the Cubans and failing at that, making it good Cold War etiquette to tolerate the genocidal Khmer Rouge because they were China's clients, etc.) Carter dropped too quickly into the gear of managing chaos -- some of it was nature at work, he was one of nature's engineers much more than a lateral strategic thinker, concerned with soul but not enough with well-being -- and so brought down the consequences that were waiting to happen onto him and his party. He wasn't helped, of course, by a Congressional establishment that had been in place too long, that harbored too many would-be presidents (all of whom proved pretty bad at the campaign trail, to make a point in Carter's favor), and too many men with seniority who thought Carter was just a hayseed governor who got lucky in the primaries.
But if it goes the other way, if Ford not only wins the Electoral College but loses the popular vote (as he was all but destined to do if he did win) and then has to own four years of roosting chickens, you can have a "1980s Democratic Revolution." You can have one after the Republican pendulum-swing blows it all on Ponzi schemes, too, if you keep your eye on the damn ball and educate your voters that they must show up for midterms too. Turnout in 2010 and 2014 was appalling at the national level (here in vote-by-mail Oregon was in the mid-to-high sixties and guess which state was countercyclical for the Dems both times? Again not rocket science.) And when that's so the "27% crazification factor" (it's a thing that holds up across a range of opinion polling systems and question sets, that around 24-28% -- the 27% figure was one particularly important poll and it stuck -- of Americans surveyed have some fricking crazy authoritarian absolutist views) show up to vote and carry all before them. You can have eras that way, like the "1980s Democratic Revolution" one of the OP here which is likely an Eighties and Nineties Revolution. Just remember, as the Democrats of 1977 forgot when Watergate and stagflation gave them all three branches of government to play with, that eventually the other side gets an era too.