Reagan had four factions to deal with . . Neoconservatives, the Old Right, Libertarians, and the New Right. He managed to bring them all together eventually, but the Old and New Right and the Libertarians were not agreeable with the more liberal, ‘Democratic’ leanings of the Neoconservatives.
“They thought he meant to roll back government and radically shrink it to a size they imagined, eliminating huge programs such as Social Security along the way. Reagan did not think in these terms, rather, he thought more of efficiency—more bang for the taxpayer’s buck. Stated another way, Reagan wanted to make government work better, not merely make it smaller. Further, he wanted government to be less intrusive in the daily lives of citizens as they sought to make their way in life. Neoconservatives were more attuned to this view and were, thus, the main beneficiaries of Reagan’s economic stance. Their manta was “democratic capitalism,†not free market economics. In short, Neoconservatives ended up being appointed to many important posts of Reagan’s government. - See more at: http://www.visionandvalues.org/2004/07/ronald-reagan-and-the-changing-face-of-conservatism/#sthash.c4D4iPws.dpuf