Final answer:
The move to liberalism in the 1970s led to increased crime and poverty rates, federal budget deficits, and social issues like higher divorce rates and drug abuse. Despite the expansion of social programs such as Medicare, the era faced economic challenges, including recession and inflation. This paved the way for the conservative backlash in the subsequent decades.
Step-by-step explanation:
By the 1970s, the effects of a shift towards liberalism were multifaceted. In terms of economic and social conditions, the nation grappled with various challenges including a rise in crime and poverty rates, the emergence of budget deficits in the federal government, and significant socio-economic issues like high divorce rates and drug abuse. Contrary to the notion of a limited federal government, certain social programs like Medicare were actually implemented and expanded. The economy experienced periods of recession and inflation, notably characterized by the stagnation of the 1970s.
The move to liberalism also included increased attempts by the government to address social issues and economic disparities, as seen in the efforts of the Great Society under President Johnson. Despite some positive impacts like the reduction of poverty and the expansion of social safety nets, there were also criticisms that such interventions led to government dependency and increased federal debt. This era set the stage for the political and social conservatism that emerged in the 1980s and 1990s, which sought to rollback some of these liberal policies.