Playing small nations, I'm always looking for ways to maximize income, and I hit upon this. Start by setting taxes to maximum, as peasant or burgher loyalty starts to fall, give them a shot of power. Eventually you will end up with 50/50 power between the burghers and peasants and very low cleric and noble loyalty. However, by swapping power back and forth only between these two classes, you can generate infinite loyalty from peasants and burghers while squeezing the most possible from them via taxes. In all, I would say income tends to be about 1/3 higher than using a more traditional strategy, in addition negative loyalty modifiers are mostly meaningless.
There are disadvantages of course, for instance your army composition is pretty much locked on one thing, and you suffer from quite a few minor rebellions. Still, it still seems a very potent strategy, particularly during peace time build up.
Another option is to get enough positive loyalty modifiers for nobles and clergy to keep them loyal as well even with the frequent peasant/burgher power swaps, though if you have to use sliders to do this it's less profitable.
There are disadvantages of course, for instance your army composition is pretty much locked on one thing, and you suffer from quite a few minor rebellions. Still, it still seems a very potent strategy, particularly during peace time build up.
Another option is to get enough positive loyalty modifiers for nobles and clergy to keep them loyal as well even with the frequent peasant/burgher power swaps, though if you have to use sliders to do this it's less profitable.