>>670471Nah. Strange thing is, extensive tax cuts are actually fiscal policy which conservatives are supposed to be pissed about. I seriously don't get why conservatives like them, it's completely counter-intuitive.
Anyways to answer your question in both Keynesian and monetarist macroeconomic theory, an decrease in taxes puts upward pressure on output (people have more money, they spend more, create more,etc.). The quantity of money demanded increases and without an equalizing monetary expansion, interest rates increase.
Now the complicated part: Republicans in particular try to maintain artificially low unemployment rates by controlling the money supply, which in turn increases interest rates father (I would upload the appropriate graphical analysis if I knew where I hid it). This double increase in interest rates causes massive decreases in investment completely crowding out any real increase in output.
This is even worse with the tax cuts focused on the wealthy, as they are more likely to save rather then spend the money in the first place.
Basically, output is decreased, interest rates increase and the lower and middle classes are worse off than before the tax cuts.
tl;dr Bush is a fucktwat