Around the turn of the twentieth century, the importance of economic and foreign policy issues increased. The Republican Party came to stand for Northern farmers, retention of the gold standard, fiscally disciplined government, and isolationism, while the Democratic Party represented Southern landowners and Northern laborers, a flexible money supply, growth of the federal government, and foreign engagement. During the Cold War, the two parties achieved a significant level of bipartisanship, agreeing on the necessity of confronting Communism and promoting freedom abroad. Another major change occurred in the 1960s, when Democratic president Lyndon Johnson signed the Civil Rights Act of 1964 into law. From then onward the Democratic Party took up the "liberal" causes of civil rights and urban workers, leading the "conservative" faction of farmers, limited government and big business-the Republican Party-to dominate the South.
Another element was added to the American political landscape with the social upheavals of the 1960s and the Supreme Court's decision of Roe v. Wade which legalized abortion in 1973. When a number of Democrats who had favored the abandonment of traditional social and moral guidelines came to realize the bitter failure of those upheavals, they converted into social "conservatives" and found a new home in the Republican Party. President Ronald Reagan emerged as the standard-bearer of these new Republicans, who established their party on the firm foundation of God's Law and strove to restore our nation's identity as a Christian country. The end of the Cold War signaled the arrival of two more simultaneous factional changes. One was President Bill Clinton and the "New Democrats", who championed unrestricted globalization and free market economics alongside social spending. The other change had been planted during the Reagan administration, hibernated under the Clinton administration, and blossomed fully after the events of September 11, 2001: the ascendancy of neoconservatives within the Republican Party. Led by President Bush, these individuals likewise championed unrestricted globalization and free market economics, but they also demanded an aggressive military response to "Islamic" terrorism with vast increases in military spending and in the size of the federal government, as well as cuts in social spending and foreign economic aid.
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