Pam's actually right. The term is from the late 19th and early 20th century. Mainstream churches believed that Jesus charged the church with improving social conditions. By making the world just, beautiful, and humane, Jesus would be so pleased, he would return to take reign over the kingdom we prepared for him. The focus was on social issues, then--so this line of thinking came to be termed "social gospel." In contrast, Fundamentalists (there were no evangelicals back then) believed that the world was rapidly decaying, and that it was on the verge of the Great Tribulation (i.e. Left Behind). All of this controversy was prior to WWI & II, Korean, Vietnam, etc.
IMHO, if the term is used today, it's simply meant as a synonym for "liberal."
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"Power tends to corrupt, and absolute power corrupts absolutely." -- Lord Acton
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