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Modern American liberalism is the dominant version of liberalism in the United States. It is characterized by social liberalism and combines ideas of civil liberty and equality with support for social justice and a mixed economy. Economically, modern American liberalism supports increased government spending and reduced privatization of healthcare, education, and welfare.

This form of liberalism took shape in twentieth century America, as the franchise and other civil rights were extended to a larger class of citizens. Major examples include Theodore Roosevelt's New Nationalism, Woodrow Wilson's New Freedom, Franklin D. Roosevelt's New Deal, Harry S. Truman's Fair Deal, John F. Kennedy's New Frontier, and Lyndon B. Johnson's Great Society.

In the first half of the twentieth century, both major American parties had a conservative wing and a liberal wing. The conservative northern Republicans and the conservative southern Democrats formed the Conservative Coalition which dominated the U.S. congress in the pre-Civil Rights era. As the Democratic Party under President Lyndon Johnson began to support civil rights, the formerly Solid South, meaning solidly Democratic, became solidly Republican, except in districts with a large number of African-American voters.

Starting in the twentieth century, there has been a sharp division between liberals, who tend to live in denser, more heterogeneous communities, and conservatives, who tend to live in less dense, more homogeneous communities. Liberals as a group are referred to as the Left and conservatives the Right. The Democratic Party is considered liberal, and the Republican Party is considered conservative.

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