This article first appeared in the St. Louis Beacon: The sequestration of federal government expenditures is in place. Just how will the mandatory cuts in federal government spending impact the economy? To answer that, consider several pertinent facts.
The sequestration will reduce federal government expenditures by a total of $85 billion, which is split between defense and other government agencies (some programs, like Medicare, remain untouchable). The cuts are not immediate and will take time to be implemented. This phase-in lessens any immediate effects on the economy.