I just wonder how liberalism has changed. It always stood for freedom and equal rights. At its beginning it was representing equal rights for Bourgeoisie against the aristocracy, monarchs. Then it evolved into supporting equal rights for everyone. Social justice and liberty was always at its core and still remains.
Unless you listen to the right who potray liberals as branch of marxism, then of course.
I'd have to dig up the old PolSci textbook to help you there, but I'll give it a shot.
Essentially the country grew to a population and economy so large it became incompatible with classic liberalism. Our entire economy is run on what's called the "goldsmith method"- A lot of people don't really understand what "Economic expansion" is. Put very simply, it's more money in circulation than what really exists in any tangible backing. All the funds in the banks in the country don't really "exist" in the traditional sense; In other words, not every account holder could possibly withdrawal all of their money from the bank, because it's not really there. It's been lended out to others. Only a small reserve, perhaps 10-20%, is actually still in the bank.
Hence, when a bank run takes place, there is hysteria when people realize their money is not there. This sort of hysteria helped to feed the great depression; When people hear about somebody losing their funds in a failed bank, they run to their own bank in panic to withdrawal their money. Of course, by that time, their own bank doesn't have the funds to give that person; round and round we go.
This is the reason for FDIC, to prevent bank runs. Other banking regulations exist to prevent institutions from becoming "Too big to fail"(sound familiar?), largely ignored and reversed over the last 30 years.
Of course, this is only one example and even the example I've just given is put in very simple terms. But that's the real reason for a lot of "Socialist" policies we have in this country, to maintain stability, or at least a perception of stability that prevents hysteria.
And yes, those calling modern Liberals "Marxists" and suggest somehow that the intended ends of
any government program is control, New World Order and all that noise... They're generally desperately wanting for understanding.