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So basically what happens in the 1990s is that the culture war completely claims the center of discussion for both the Left and Right, with class issues being seen as more of a nuisance that occasionally must be dealt with out of necessity rather than an actual issue to be fought for perpetually (this applies to the expansion of the military and security state as well of course, which was basically seen as a necessary evil to maintain the "End of History" atmosphere). What is often said about the Democrats at this time, and again under Barack Obama, is that they moved Left on social issues while not doing the same on economic issues. Personally, I see this analysis as lacking. Throughout the 90s many social issues such as LGBT rights, continuing the Civil Rights advancements for PoC, women's rights, etc were utterly and purposefully butchered by the New Democrats. A true "Left" approach on issues such as these would be to simply legalize gay marriage, prohibit the build up of the private prison industry and push for rehabilitation rather than punishment, end the War on Drugs, and institutionalize a feminist mindset on women's issues at the governmental level. This is more akin to the approach some European social democratic parties took in the 1980s and 90s, a true "Left on social issues Right on economics" paradigm.
The New Democrats however actually were quite conservative on social issues, just not to the extent as the Republicans, particularly the Republicans who took power in congress in the "Republican Revolution" (google it for more info, its quite interesting). Many of the new Republicans simply wouldn't budge or actually wanted to go backwards on this issue, whereas the New Democrats solutions were to promote equality in OPPORTUNITY. Essentially the line became that if you were represented on TV more, if you gained more education and skills and thus had a better chance of climbing the corporate ladder, if you were able to CONSUME as much as a previously privileged person, and if your groups identitarianism was tolerated as much as the "predominant" one, then you were liberated. Rather than giving people liberation people were given the "tools" for liberation and left to sort it out on their own. Whereas neoliberals in the Republican Party, one could argue, wanted deregulation and lower taxes as ends in themselves, so that old white guys and their yuppie sons could enjoy economic prosperity while keeping the minorities and women and other marginalized groups who could do the same to a minimum, the New Democrats sought these economic "reforms" as the pathway to social equity (hence the memes about neoliberal Democrats equating more women CEOs with women's emancipation. It's quite literally what they believe)
Thus, this is what became the face of Leftism in America in the 1990s. Sure there were still holdouts such as the anti-globalization movement, a resurgent interest in anarchism (itself largely a paper tiger), certain social democrats who maintained their position in congress such as Bernie Sanders. But make no mistake, what became of the US Left in the 1990s was essentially a full bending of the knee to the New Democrats and their approach to politics.
Thus you get folks like Nancy Pelosi and Maxine Waters who, despite being seen in Europe and other parts of the world as Angela Merkel style "moderate" conservatives, get to call themselves "the Left" or at least get to be perceived as the Left. And it worked great for Republicans as well, because they got to essentially blame failures of the Democrats, who weren't much different from Ronald Reagan at this point, on "Leftism", "socialism" "communism" etc and move even further Right. This got even worse under Bush and Obama.
Therefore, despite the overton window beginning to shift ever so slightly back to the Left thanks to the growth of groups like the D/SA, the Bernie Sanders campaign demystifying old school Keynesianism and social democracy and even getting young people interested in researching what is genuinely meant by the term "socialism"(IE figuring out that it doesn't mean "when the government does stuff") and even the rise of a small but growing Far-Left thanks to the Internet and so on, there is still a tendency and a habit of calling the Democrats, whether they are the corporate neoliberal types like Pelosi and Clinton or the succdems like Bernie and his new crops of "democratic socialists" the Left. Because it worked so well for them for so long many neoliberals don't want to give up portraying themselves as Leftists and I suppose there are some who genuinely believe it and because it worked so well to smear the Dems as "leftists" the Republicans for damn sure will NEVER give it up.
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