Francis Fukayama explains economics to conservatives (and the rest of us) in Newsweek in an article titled The Fall of America Inc

Prior to the 1980s, conservatives were fiscally conservative— that is, they were unwilling to spend more than they took in in taxes. But Reaganomics introduced the idea that virtually any tax cut would so stimulate growth that the government would end up taking in more revenue in the end (the so-called Laffer curve). In fact, the traditional view was correct: if you cut taxes without cutting spending, you end up with a damaging deficit.

Inequality in the United States rose throughout the past decade, because the gains from economic growth went disproportionately to wealthier and better-educated Americans, while the incomes of working-class people stagnated.

If anything has been proven by the last few decades, it is that "neoconservative" ideology, in both the domestic economic sphere and in the area of foreign policy, has been disastrous. This is obvious to anyone, except of course for John McCain and most of the Republican party and the "conservative" movement.