German reparations to Britain and France were unrealistic. Germany ultimately defaulted. Failure of Germany to pay debts or rebuild economy hurt fragile British and French economies which had not completely recovered from WWI suffered. And without US loans or lower tariff, the world could not buy US goods, forcing US businesses to cut production and layoff workers. Differs from traditional liberalism.
Modern liberalism accepts the expansive role of government in the affairs of the nation.
Liberalism of the 1930's and since has made efforts to address ethnic and class issues. This sets liberals apart from turn of the century progressives. Conservatives disliked the New Dealer's appeal to class issues, which they felt was divisive. This meant that conservatives opposed empowerment of labor unions, etc. Conservatism was on the defensive until the Reagan revolution of 1980.