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Apart from race, isn't this a problem with English or language in general? We use the same words for varying degrees of a certain notion, and people cherry pick the definitions that they want to cogitate for response. If I call someone a conservative, is it a compliment or an insult? That depends on both of our perceptions of the word conservative as well as our outlook on ourselves as political beings; however, beyond that, I could mean to say that the person is fiscally conservative, but as the current conservative candidates are showing conservatism to be far-right extremism, the person may think, "Hey! I'm not one of those guys."
I think if someone wants to argue with you, you'd be hard-pressed to speak eloquently enough to provide an impenetrable phrase that does not open itself to a spectrum of interpretation.
Sure. "Conservative" isn't a fixed political position. Quite often, it's a claim about one's political position: that it stands for some historical good or tradition. A "conservative" in Russia might look back to the good old days of Stalin whereas a "conservative" in the U.S. would not appreciate the comparison. It's also a flag color; your "fiscal conservative" may merely not want to wave a flag of the same color as Rick Santorum's.
Here's the new thread for posting quotes, with the usual rules: