Liberalism

In most of the world, Liberalism is viewed synonymously with liberty and freedom, typically associated with a small-government philosophy (the liberty and freedom being for the people). In the United States, however, the term has been more-or-less hijacked by politicians with a big-government philosophy, typically those that had previously called themselves progressives. This occurred during the early 20th century. The modern, United States equivalent of Liberalism would be called Classical Liberalism or sometimes Libertarianism.

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Speech Relevance

Liberalism is mentioned several times in both 'A Time For Choosing' and 'Encroaching Control':
And of Pennsylvania, another articulate spokesman, defines liberalism as "meeting the material needs of the masses through the full power of centralized government."
This is an example of referring to Liberalism in its hijacked form. When the central government has enough control to meet the material needs of the masses, it must inherently take that power from the people, removing some or all of their freedoms. Also, a small government would be incapable of providing for the millions of people in the country, so a big government would be required.
Well, the trouble with our liberal friends is not that they are ignorant, but that they know so much that isn't so.
Admittedly there is a risk in any course we follow other than this, but every lesson in history tells us that the greater risk lies in appeasement, and this is the specter our well-meaning liberal friends refuse to face--that their policy of accommodation is appeasement, and it gives no choice between peace and war, only between fight and surrender.
Reagan is talking about the Cold War and how the democratic/liberal members of the government were interested in not building up the military for fear it would provoke the Soviet Union. "Peace Through Strength" is a motto used by Barry Goldwater and by Ronald Reagan in their respective runs at the presidency.
A short time ago, Norman Thomas, six times candidate for president on the socialist party ticket, gave a critique on the success of this program when he said the American people will never knowingly vote for socialism, but under the name of liberalism the American people will adopt every fragment of the socialist program.
Thomas' implication is that there is little or no difference between liberal programs and socialist ones except the names. One of those names has a stigma attached to it that Americans will not accept (socialism) and the other does not (liberalism).
Those of the liberal persuasion today are lobbying for a tax reform measure now before Congress, a tax reform measure which may come to us piecemeal, not all in one piece.
Admittedly, I'm sure the conservative crowd guilty of the same kind of thing, though not necessarily with taxes.

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Source Links

Liberalism (Wikipedia)

Classical Liberalism (Wikipedia)