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For the party formed by the 1988 merger with the SDP, see Liberal Democrats (UK).

For the Liberal Party formed by those opposed to the 1988 merger, see Liberal Party (UK, 1989).

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The party went into decline after 1918 and by the 1950s won no more than six seats at general elections.

Apart from notable by-election victories, the party's fortunes did not improve significantly until it formed the SDP–Liberal Alliance with the newly formed Social Democratic Party (SDP) in 1981.

The first pitted LDP politicians who previously had worked in the national , an ex-bureaucrat who served as leader of the Liberal Party and as prime minister of Japan during most of the occupation.

The ex-bureaucrats filled the gap left when the occupation authorities banned nearly all former politicians from active participation in politics.

The Carter administration was the first to begin regulating and neo-liberalizing the United States economic system.

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