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Originally Posted by Mizzou B-ball fan
It means to be as conservative as possible with spending while meeting the needs of the people. It also means to avoid wasteful spending in pursuing those needs.
I'd agree that the far right has let partisan politics stray them from that platform, but that doesn't change the meaning of that phrase.
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I see where the confusion is. I'm not saying the "real" meaning of "fiscal conservatism" has changed, I'm saying the "current" meaning of "fiscal conservatism" has changed (i.e. what you're suggesting in your second paragraph).
Much like what the "real" definition of "liberal" is vs. the "current" definition of "liberal".