Democrats, terrified of another Republican presidency, come out en mass to re-elect Barack Obama. Romney get the Republican nomination, but is defeated due to concerns over his commitment to reform. Low employment drives moderates to fury that they cannot find anyone to seize control of the U.S. economy from business leaders. The fuel for the fire is unemployment that still remains above 7%...
Demonstrations against massive state government cuts, forced by Republican recalcitrance in Congress, are the catalyst for the reversal.
Sarah Palin is defeated early on in Republican primaries, and is a part of the Tea Party movement's implosion. The movement loses momentum and faith due to half-hearted efforts by congressional Republicans to confront the public debt. The blocking of a states aid bill reduces strain on the debt, but threatens the ability of local governments to provide basic services. More than anything, the Tea Party's characteristic refusal to accept anything but complete obedience by its leaders leads to a series of poorly advised challenges to Republican incumbents, the failure of which discredits the movement as a political force.
Democrats narrowly retake the House and hold the Senate. The new Congress is remarkable for the anti-corporate stance that is marked by New Age-type influences. It proceeds forward with a mandate to destroy national corporations via tough anti-oligarchy laws, making way for a new age of regional competition.
The Democratic victory is a watershed moment in the history of American politics, and marks a passing over of Democratic values to Republican values as Republicans realize their values have become unelectable. Many moderate Republicans consider running as independents in 2014 to improve their chances of winning.