Sequester is taking effect and hundreds of thousands of federal public/government employees are being furloughed. Twenty percent of their wages will be stricken from their paychecks due to sequestration. All this in the vain of austerity and saving money. Less going out to try and match what comes in. The trouble? The amount coming in is less and less because corporations and the top 1 percent are paying less and less in taxes due to loopholes no politician is doing anything about. Welcome to a government for, by, and of the 1 percent. This is just the very tip of the iceburg, wait till this is used to justify the elimination of entire agencies in government, the entirety of the federal civilian workforce, etc. Will it go away entirely? No. What will come in its place? Welcome private government ... Where profitable, private organizations will replace our public government, all to the deafening applause of the American public as they smile and clap for less government.
Sudden government budget cuts are always problematic. It's an automatic loss of jobs, less money going through the economy, and less hours (furlough days). This will also hurt schools. A lack of money in schools will have long term effects on our future work force. The government needs to think more about the long term effects before they make decisions like these.
The sequester does not adapt to circumstances such as economic hardship and unemployment. With unemployment high and more Americans dependent on benefits, this a bad time to cut those benefits. Housing and food benefits keep people fed and sheltered when jobs are sparse. Also, government jobs will decrease as well with possible lay offs, resulting in more unemployment. For that reason, the sequester will not help this economy but make the current problems much worse.
I believe the Republicans will finally wake up and cooperate with the Democrats to at least agree on a deadline extension on the sequester. If it does go through, then I believe the sequester will slow the economy, but it won't be a disaster. The economy has been in horrible shape, but we have gotten by as a country. Hopefully the government will wake up and we will prosper.
These fiscal cliff stand offs are always resolved in the end, and the run up to them are always a bit of chest pounding. Even if the sequester were to happen, there would likely be a deal strung together a day or two after to kick the can down the road again.