Will automatic spending cuts have a devastating impact on the U.S. economy. No.
What will happen is that bureaucrats will deliberately try to spread "the hurt" as far and wide as possible in order to defend their inflated budgets.
They will not cut waste, they will cut services. They want to inflict as much pain as possible so we come crawling back screaming uncle and throwing dollars at them - BEGGING them to take more of our money - just to make the pain stop.
We have the wrong people, motivated by the wrong reasons, making the wrong choices.
I wonder why Obama suggested it, signed it into law and said he would veto any attempts to change it?
Obama wanted to make it suck so bad that both sides would have to come together and make it right.
Why hasn't it worked out? Well, he probably wasn't counting on Tea Party Republicans loving things that suck.
The FDA will do more than 2,000 fewer inspections. Sucks for everyone. Fewer inspections means greater health risks and lost revenues from slaughterhouses and other things being shut down, for instance.
National Parks will either be open a lot less or will be closed altogether. Lost revenue.
The military sees 800,000 employees beginning to take one furlough day a week. That means less spending by military folks, which means lost revenue.
The sequester "cuts" actually hit real everyday people pretty significantly and I find the ignorance of some people here appalling. Unless you've got your head literally up your ass, if you check up and down all the people you know and the people in your family and extended family, you'll be able to identify actual people who will be affected by this.
Of course the Tea Party loves it, this will cause a lot of problems with an economy that is really wanting to stretch its legs now, which is something Republicans really don't want because then they think President Obama stands to benefit from a good economy.
So we have America cutting the end of her nose off today in order to spite herself, and it's because Republicans simply will not even negotiate any revenue increasing measures even though the President is prepared to sign off on significant spending cuts.