The Democrats are only liberal by comparison to the Republican who are so far to the right that they can’t even see where the centre is from where they are.
In most counties that have liberal parties, those parties are very much further to the left of the political spectrum than the Democrats currently are. In many other countries, a party like the Democrats would be considered to be a centre-right party.
On another point, a party can support socialist policies such as a government run equal access health care system while still being strongly committed to democracy in government.
No well informed person should make the mistake of thinking socialism in any way implies totalitarianism.
Just because a party strongly supports and promotes capitalism does not mean they have a strong commitment to democracy. The Republicans are very strong on Capitalism but their recent unwillingness to work with the duly elected majority in the House and Senate suggests they are not so strongly committed to democracy.
Labels are more often confusing than informative. Name calling just makes the confusion worse!