Republicans consciously drove the process. This was not an accident, it was a plan. And not a secret plan. It was all done out in the open.
Some key dates are
1971: Nixon solves his Vietnam problem by crashing out of the gold standard and ending the post-war economic consensus. This creates a vacuum that is filled by far-right intellections, notably Hayek and Friedman.
Robert Powell issues his now famous memo—outlining his plan for a neoliberal revolution in the USA which puts business men firmly in control of everything. Something like this plan is eventually implemented by the Republicans and their cronies.
For example, they end up totally controlling how economics is taught at all levels: now all economics students only ever learn Hayek and Friedman and other far-right economists.
1973: The first oil shock caused by oil producing countries in Arabia taking back control of their oil from the US and the UK.
When Iran tries to follow suit it was sentenced to 25 years of rule by US-backed dictator. When Venezuela tries it, they are virtually wiped off the map. The House of Saud prevails, and begins enthusiastically exporting what we now call Islamism to the world in the hope of converting the world to Islam and destroying the unbelievers in the USA.
The first post-war recessions hit and change the economic landscape of the world. And this creates a crisis of confidence in the post-Keynesian consensus. Enter the neoliberals. When economists, journalists, and politicians have all been indoctrinated in the same monoculture, there is no meaningful discussion about alternatives. They all believe that neoliberal economics is the only viable alternative.
This situation never gets better. Wages stagnate, US jobs are exported to Mexico and China (the USA’s bitter enemy), and yet the people who own things for a living become incalculably better off at the expense of literally everyone else.
1979: Reagan, fearing that he will lose to incumbent Jimmy Carter, has his henchmen make a deal with Gerry Falwell and other Televangelists, to radicalise and mobilise their previously apolitical cult members to support the Republicans in return for the Republicans pushing a fundamentalist Christian political agenda. They believe they have been promised a theocracy in the USA and begin agitating to bring about the Apocalypse. (And of course, Trump hands these people their greatest victory in the SCOTUS striking down Roe v Wade).
On taking office, Reagan appoints disciple of the Ayn Rand cult, Alan Greenspan, as Sect of the Treasury. Greenspan is one of the most extreme anarcho-capitalists on the planet. He tears down all impediments to exploiting the shit out of citizens. Later, Greenspan convinces Bill Clinton not to fulfill any of this campaign promises because “there is no money [in the richest country in the world]”.
Throughout this period the USA is constantly at war, but most especially in Central and Southern America. The USA has toppled more democratically elected foreign governments that it has elected presidents.
At this point the writing was already on the wall. And one can find, for example, Frank Zappa already loudly complaining in TV interviews about the USA becoming “a fascist theocracy”.
2001: having fought all their wars in other people’s back yards, the Americans are shocked when a group of Saudi nationals (trained by former US ally Osama bin Laden) carry out a daring plan to fly planes into iconic buildings. Two out of three succeed. About 3000 US citizens are killed. Which is less that domestic terrorism
The USA attacks Afghanistan, kills in the order of 200,000 innocent civilians, summarily executes Bin in Pakistan (where he has lived for many years), then withdraws leaving the Taliban in charge. The total cost of this pointless exercise to the USA was in excess of $2 trillion.
For good measure they utterly destroy the civil infrastructure of Iraq and leave it a smoking ruin. At a cost of $3 trillion.
Government debt goes up, so they “have no choice” but to slash budgets and taxes for people who own things for a living. Cutting taxes for the rich is a central policy platform of neoliberalism (especially in the USA).
Since 2000 the US median wage has risen by 25%. But the median cost of healthcare, medicine, and education has all risen by 250–300%. The median cost of a new car has risen by 177%. Middle income earners can no longer afford a middle class lifestyle
Domestically, 9/11 flips a switch in the hearts of many Americans. They start thinking “We are under attack!” “We are not safe.”
At this point, fascism and the collapse of democracy in the US are more or less certain (though few of us could see it at the time). The paranoia does not subside because far-right agitators are the most paranoid of all. Suddenly xenophobia is the rule in formerly tolerant and welcoming Americans. Now all foreigners are viewed with suspicion.
The police become increasingly militarised. School shootings become an epidemic that the USA seems unable to do anything about. “At the same time, as of 2020, right-wing extremist terrorism accounted for the majority of terrorist attacks and plots in the US and has killed more people in the continental United States since the September 11 attacks than Islamic terrorism” — Wikipedia.
The switch never got flipped back to its peacetime setting. The USA now sees itself as being at war with the rest of the world. And they have elected a leader who wants to lead this war, against worthy Democratic opponents who refuse to acknowledge the problems that obsess Middle America. At around the same time as the US succumbs to the paranoia of 9/11, middle income earners are realising that they cannot afford a middle class lifestyle any more.
The average American can objectively say that their way of life is under attack. What no one ever seems to get is that the problem is imperialism and neoliberalism. By treating everyone with contempt, the Americans have sowed the seeds of their own destruction. But most especially, if you shank the middle classes, they will organise against you.
It was foolish and reprehensible for the Democrats to run a business-as-usual campaign when middle America is both paranoid and broke; while the 1% are becoming ever more ostentatious in their conspicuous consumption and ever less philanthropic.
But you have to remember that Democrats could have defeated fascism at any point along the way, if they had taken it seriously. They did not. They thought Trump running was funny. Then he won, and they were like “how could this happen?”. Even now, after Trump has won a second term, they are like, “this could never happen, so it didn’t happen”. Fool me once…
Meanwhile confirmed drug addled, serial rapist, and fascist bully-boy, Matt Gaetz is set to be AG and thus the principal weapon in Trump’s revenge against the Democrats: key figures and institutions are going to be targeted by the AG and the DOJ. It would not surprise me if, four years from now the Democratic Party is officially denounced as a terrorist organisation and their assets seized by the state. They won’t wait 4 years like the hapless Democrats.