Evolving from the Anti-Federalist party in the 1790s, the Democratic party originally favored states' rights and a strict following of the Constitution, and was strongly opposed to a national bank along with the interests of the wealthy. Since then, the Dems have moved more into a generally 'liberal' space about modern issues of the time, favoring progressive movement towards changing policies in an attempt to fit a changing world. This tactic has worked very well for the democrats, seeing as they are the nation's largest party.
The Democrats pride themselves in being 'Progressives' on most issues supporting issues that change the old ways of thinking such as abortion rights, same-sex marriage, universal health care, and lower dependency on foreign oil. The Democrats are a good counterbalance to the Republicans and are there to keep the nation up to date as new technologies bring about these new issues.
That being said, there are many ways in which the Democrats can become overly 'progressive' or not be smart on certain issues. Defense spending for example. The safety of our country is an issue that should be held in the highest regard, and lowering defense spending is not something that we should be doing. Defense spending should be kept in check so they do not get out of control, but not cut severely.
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