I think the rigtward shift would still happen under a Republican, it would just happen later than OTL (as early as 1984 if the democrat that succeeds Ford proves to be a disaster, but no later than 96 or 2000).
This. So many good things to unpack on this page of the thread but first let me say: this.
It's also indicative of very different approaches taken within the two parties, and we can take the case of our own history and compare it directly to a posited ATL, in this case a "Democratic Eighties" which with that suffix (not just through '84 but the decade) presupposes a Democrat elected in 1980 does no worse and possibly better than Reagan in handling the economy through to 1984. Let's look at OTL first.
Coming into the Eighties a few key things happened. First, Iran blew up
early, many months before the Shah's terminal decline, and brought with it an oil "cost-push" inflationary shock starting early in 1979. Panic speculating on the markets, and panic buying of gas by people who remembered '73 created "artificial" (they were real and tangible, just not mechanically necessary) shortages and egged on inflation. Carter dealt with this extraordinarily poorly -- after making a stirring speech (well-received at the time) about the crisis of the American spirit, he turned around and did flat nothing useful to contain inflation, create jobs, or provide a coherent plan for emergency buffer stocks of transport and heating fuels to meet short-term needs and hedge against inflation. By 1980, unemployment had started to trend up again and growth had tanked -- there was a real recession on. But the monster was inflation, shooting up into the teens which made both the markets and Americans in general panicky. The "foreign troubles," which other than the Soviets proving they could still be bad guys could be summed up in one word -- Iran -- looked intractable. Volcker jacked up rates as an incomes policy-by-default to defeat inflation. Reagan won in a landslide.
What then? The Reaganauts made things much worse for a time by trying to supply-side their way out of the problem, causing much greater distress through about 1982. Between that damage to growth (the opposite of what Laffer posited) and the punitively high interest rates, unemployment spiked at levels not seen since the late Thirties. There were Rust Belt towns with one in four able-bodied adults out of work. This was a bug in the macroeconomic sense but a political feature for the New Right because it broke the backs of many a large labor union. Then during 1983 a white-collar recovery happened: inflation finally plummeted, the stock market took off, and professional jobs started to reappear in force especially in places tied either to the financial-services or electronics and computing industries. In 1984, a presidential election year, the blue-collar recovery finally came as unemployment dropped meaningfully (by about forty percent between spring of '83 and spring of '84, from c. 11% to c. 7%.)
What about the parties? After the great crisis of 1981-83, all this seemed to be victory and vindication for the New Right, and for a coalition of New Right interests -- the free-marketeering cultural conservatives of the Sunbelt, the neo-Confederate Dixiecrats, and the large vested corporate interests -- and a subset of voters incorrectly called "Reagan Democrats" when what they really were was "unionized George Wallace voters looking for a home." That seemed to dominate American politics. And as the New Right, Religious Right, and all the components of the modern American right did
whether they were winning or losing, they doubled down.
What about the Dems? Great Society liberalism was put in disrepute, "McGovern" was a dirty word and so was "Mondale," and significantly one of the party's most important economic underpinnings -- mass contributions collected by large industrial unions -- was drying up. So you had first the "Atari Democrats," mostly veterans of the New Left who were socially very liberal but hated what they saw as culturally reactionary union leaders and unwieldy government programs: really they were Progressives, who believed in meritocratic virtues, liberty and equality for all, and technocratic wisdom. So where they would've been liberal Republicans in the Sixties, now they were ex-New Left Dems who backed and were backed by socially liberal entrepreneurs in the electronics industry and parts of the financial world. Then there were the New Democrats, and there was some overlap with the "Ataris" but the New Democrats skewed more Southern and Northeastern, and what they really did was bring a less-statist form of Rockefeller Republicanism in as a dominant ideology for the wounded Democratic Party. Rockefeller Republicans, after all, believed (less than truly-liberal Republicans but still) in civil rights for all and a hand up for the less fortunate, in free trade as a boundless world of opportunity, and investment in education to build the perfect meritocracy. Those forces took charge in the
institutional Democratic Party -- the officials and campaign staff and pollsters and bagmen -- and the politicans who championed them took leadership roles. So in some important ways what was "Republican lite" ideology -- the left wing of the old Liberal Party (in the 19th century classical sense of Liberal) that the GOP had been until the Sixties civil war and the Southern Strategy -- now ran the Democratic Party, displacing its social-democratic elements (never Marxist in the sense "social democratic" sometimes meant in Europe, but a very American social democracy, concentrated on economic equity and small-d democracy evening out the economic and political rights of rich and poor around a vast middle class, not so very different -- different but not
so much -- from what that red-blooded imperialist nationalist Teddy Roosevelt had preached at the birth of the century) which wanted a more equitable society but sometimes, as the sausage was made, at the great expense of marginalized groups like racial minorities and women.
So what about this world? A Democrat wins in 1980, and from the OP's premise one who does as well or better than Reagan's crew in getting the economy right by 1984. Iran may go south later -- Ford's administration would have backed a Shah-based system for much longer so it would probably take at least until Reza Pahlavi's death, so that economic/foreign policy bow wave hits closer and harder by the 1980 election cycle. It also means the recovery probably starts a little later, so closer in time to the 1984 election cycle. In the meanwhile, any major Democrat is going to put more emphasis on using whatever deficit spending there is to maintain jobs, to prevent the kind of obscene unemployment levels seen in the Rust Belt IOTL. That will help the Dems' electoral record -- it's a pretty simple equation out there in the little about who's willing to fight to get you a job and who doesn't give a damn about the little people.
The sort of Democrats most likely to win in 1980 (the Careys, Mondales, Askews, Muskies) will go with the jobs. So that's a boost in a number of key states that still carry a lot of Electoral Votes in the 1980s census distribution. Also, it means that the unions, while damaged, will remain institutionally and economically a stronger presence in the Eighties than IOTL. Also, because of the likely presence of some New South era liberal on the ticket (most likely Reubin Askew or Dale Bumpers if he could ever be talked into it) on the ticket because the Dems' electoral strength, other than a growing presence in California, was mostly east of the Missouri River, there will be a more economically "liberal" in the postwar sense Southerner tied deeply to the ticket. The administration in place, and its allies in state governments and Congress, are more likely to follow a modified version of traditional liberalism -- more deficit-hawkish wrt inflation, more committed to bleeding the Soviets in Afghanistan and containing communism in Latin America (but not, at least not so much, by backing crypto-fascist regimes instead), more committed to the "classical" civil rights of African Americans and women and less so to the newer civil rights of Latinos and the LGBT community. In this world the "Atari Democrats" probably have more leverage as change agents than the New Democrats. The Southern ones are waiting their turn and with more robust figures in the Askew/Bumpers/Jim Hunt/Jim Folsom Jr vein in place, it will take longer for the Clintons of the world to advance and they may be outflanked in the meanwhile by "Atari Dems" like Gary Hart or Bill Bradley, who are more consistently socially liberal and in some cases more economically "liberal" though they are free-traders who love them some tech entrepreneurs. There will be a generational change in Democratic leadership moving from the Eighties to the Nineties, but that change may not be as extreme, nor as totalizing (in terms of who controls the levers of party function, candidate funding, platform fights, etc.) as the change from Mondale to Clinton.
Also, there are secular issues at work: by that I mean cyclical rather than religious-vs-not. After the inflationary disaster of 1980-82 and the levelling out, OTL saw the 1983-88 boom (in which the potentially dangerous stock market crash of '87 became just a market correction) and the long, large boom of 1992-2000. During that period, also, the proportion of Americans employed in manufacturing fluctuated but only within a steady range: after dropping a good bit during the Seventies due to the "steel and coal crisis" things leveled out up to about the millennium.
After that, as the effects of NAFTA and China's full entry to the WTO kicked in during the Aughts the fucking
bottom dropped out and brought Hell riding with it: the opiate epidemic, the epidemic of middle-aged white female suicide, the countercyclical death rate of middle-aged blue-collar males, the destruction of whole communities into crime-ridden wastelands left behind, the rise of well-cultivated (literally by "outside agitators" just like the Old Right used to say about the left) pan-racist (anti-black, anti-Latino, anti-Semitic, anti-gay, you name it) lumpen nationalism... well, that's all a different story for a more dystopian TL: ours.
In
this TL of the 1980s Democratic Revolution the trends are these. There's a boom from roughly the end of 1983 (I'm pushing it back a few months because while the economic policy is more sensible -- no supply-side "whoops" in the FY 81-82 budget -- the "cost-push" oil crisis over Iran hits later) through at least 1988 and maybe 1989. And then there's another one, tied to the tech boom and the housing boom and perhaps juiced even more than IOTL by Gary Hart-style "targeted investment initiatives" that really
were meant to do things like "invent the Internet" in much the way Eisenhower built the interstate system, rather than more lumpen Bush Sr./Clinton-style stimulus packages, that lasts pretty much through the Nineties. The Soviet Union will still continue to degrade -- a Democratic administration with Zbig Brzezinski and potentially Scoop Jackson in it will
very much be arming the
mujahedin to the teeth and buying union-made M1 tanks (go Lima, Ohio!) to put all over central West Germany and union-built surface warships (go Massachusetts, Mississippi, Long Beach, and Tacoma) to spend them into the ground. And at some point, whether by agreement or simple secular trend as North Sea production, Soviet production, and a willingness to drill and pump more in the States even though it depletes our supplies faster, oil prices will head down towards secular lows and probably stay there at least for most of the Nineties as IOTL. What this means is, despite all the poli sci literature on "party fatigue" and the vagaries of intra-party factional warfare in primaries, etc., there is a very good chance that whatever party wins in 1980 must do two things -- make it through the Great Recession of 1980-83 and not screw up anything
too big in terms of foreign policy -- and they're nearly guaranteed a good sixteen years in the White House, twenty if they're lucky as well as good. It damned near happened IOTL, it took every failing of Poppy Bush and Dan "Potatoe" Quayle to make it not happen and e'en so, just add one more jilted Clinton lover, make Perot stay out when he got out in the summer, speed the recovery up by an economic quarter or two, and he would've done the hard part for whichever party was in power -- survive the likely economic downturn sometime in the 1989-93 window -- still in charge, thereby racking up at least 16 years of White House control and potentially twenty. We can thank Ross Perot as much as the "New Democrat" initiative for the DLC Nineties, especially as weak a candidate as Clinton was despite his human gift at retail politics (either Gore or Bill Bradley would have been much more solid candidates of a similar stripe, despite their more reserved demeanor.) There are very strong medium-term trends that bear fair winds for anyone who sorts out the end-of-Seventies crisis. (Similarly in the UK you had eighteen years of Tory government despite the near breakthrough during economically very bad times c. '92, and a long patch of first right-wing PC then relatively right-leaning Liberal government in Canada. Again, whatever ideology survived the early-Eighties crisis tended to see its way past the bump at the start of the Nineties and well into the next decade.)
What does this do to the Republicans? I think you get a very different answer from what happened to OTL's Democrats-on-the-outs. The modern American Right -- the ideological New Right born of Buckley and Goldwater and all, the Religious Right that came out of segregation until it found its happy blood libel in abortion and ultimately allied, despite old denominational suspicions, with some theologically
out the frak there charismatic denominations determined to bring on the End Times, and the culturally revanchist remains of the Old Right -- does not retreat. It does not tack towards an imagined middle ground in search of battleground demographics. It
doubles down. This is best seen in the House of Representatives, where after decades in the minority, and despite some relatively moderate small-c conservative leaders like Bob Michel as titular heads of the party, it was the relentless, almost Leninist ideologues (Newt Gingrich loved citing Lenin, he thought he had exactly the right methods just the wrong ends) who took control of messaging, party discipline, finding and grooming candidates for local primaries, creating regional strongholds in conservative states, getting control of state governments to be in charge of redistricting after each census to re-gerrymander the House away from Democrats and towards Republicans -- it was
those guys who laid the conditions for 1994.
That was helped along by a bunch of self-inflicted wounds of Bubba's, and especially by blue-collar voters deserting or staying home because of NAFTA, one of those generational changes in the party where, in the "1980s Democratic Revolution" TL there would probably be more powerful party gatekeepers committed to the union vote who would be skeptical of free-trade panacaeas. But the fact that the GOP were ready, that they had "talking points memos" handed out with language to brand Democrats as enemies of the American way, because they had been taught what buttons to push to get their partisans out to vote, because they were committed, they seized their chance and made something of it. The GOP ITTL is likely to behave the same way. If they are lucky, when their breakthrough moment comes for the White House they'll have a candidate in place who can sell a right-wing agenda as "compassionate conservatism" with a smile like the Bush brothers -- Carroll Campbell of South Carolina would've been a good one, as would Dirk Kempthorne of Idaho, if Bush family fortunes have faded after Ford's second term. But in 1980 when I suspect Reagan beats Dole from the right ITTL but has to live with his right-wing primary language costing him the general, and again in 1984 and '88, I think you will see committed New Right candidates for the Republicans in the presidential cycles. In '92 there may be a tack back to "moderation" in the form of a pre-New Right style conservative in the Gerry Ford mold, but again if that little experiment fails and the Dems get their at-least-sixteen years, it's right back to the New Right laboratories to build the perfect salesman. Because the New Right has always been genius at sales -- their very roots lay in professions that involved a large sales component, from "direct marketing" to real estate to auto sales to franchising, and so on. Reagan became famous because of his stock sales-pitch "The Speech" about how liberal values destroyed capitalist liberty. They will hone their game, they will eat away at the Democrats, complacent and too often corrupt (esp. in the House) in their long incumbency, they will always keep at being who they are, and by sometime in the Nineties they will be ready to strike. And there's a good chance, whether it's '96 or 2000, that they have at least two of the three branches of government simultaneously and start working like hell at replacing Supreme Court justices. They learned from Roosevelt, from both Roosevelts: never waste a window of opportunity. So the chance when it comes will be sharper,
more partisan,
more rapid, and
more far-reaching (voucherized Social Security anyone? How about we defund the Medicare-for-all created during the Eighties boom by the old school liberal president then? And let's get some DeVos-ification of American education fired up right now. Glass-Steagal? What Glass-Steagal?) than what we have experienced in the Reagan, Gingrich, and Dubya revolutions. Compress much of that into eight frantic years (if they can gin up a timely economic bubble at reelection) and that's what's coming ITTL. And they will have had more advance time, especially during the Nineties, to wear away at the blue-collar white folks who did so well out of the 1980s Democratic Revolution because it still took an interest in industrial labor and small farms. So if they have better control of the Rust Belt states, you could be looking at another "long majority" like the Democratic one now passing in the OP's TL....