It is pretty simple.
Old school republicans actually want smaller government, less taxes and more personal freedom.
Then Reagan sold the republican party out to the religious right. With that the republicans took control of the south which had been a long time democratic stronghold. With that sea change the republican party changed. They suddenly became the party of morality. They still wanted you to have your personal freedoms, so long as they agreed with those freedoms. They also raised taxes and increased the size of government. They basically became just like the democrats only the democrats are tax and spend while the republicans are debt and spend.
So long as they placate the religious right they have a built in base that is easy to control and that can be counted on to turn out for elections. We saw how that worked against them in 2008. The religious right didn't like McCain and weren't too happy with hour Bush had treated them so they didn't turn out.
The old school republicans basically are what the new libertarians are.
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