The Real Effects of Sequestration
The Budget Control Act passed by Congress directs that on January 2, 2013, the Obama administration must cut the defense budget by at least $55 billion and cut the same amount from domestic discretionary spending. Some observers assert that such reductions will damage the economy and increase unemployment. Even many who view excessive government spending as economically counterproductive oppose Pentagon cuts. These concerns are overblown, Cato scholars explain.