specifically : a historical process by which the semantic and connotative status of a word tends to decline
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Sooo what you're saying is that Socialists think conservatives are liberals?
Yes, in the sense they also believe in the neoliberal free-market and private-property capitalism. This also means liberals are still right wing, albeit much further to the left than conservatives.
Both conservatives and so-called liberals believe in free market capitalism, despite having radically different points of view when it comes to social issues like racism, poverty, guns etc. Socialists agree with left-leaning liberals on the vast majority of social issues btw.
In a nutshell, if you think really good representatives could fix most of the issues with capitalism as it stands you are a liberal/neoliberal. If you think the current capitalist system can't be fixed by just changing the players without changing the game you are a leftist/socialist. You can go further left than you might be used to, this is where this confusion comes from.
It's not that we think that... it's just that we don't really see much of a difference.