Back in early December I said the US economy was about to take a “Swan Dive” over the “Fiscal Cliff” as sequestration came into effect.   I said it would do so since it was a “political orphan,” meaning that the blame could not be placed on any one politico, but on all.  Thus it was the best political option, but not necessarily the best economic option.

So now we are in the midst of sequestration with all Federal agencies scrambling to adapt to major cuts in their budgets.  However, in spite of dire warnings, the economy has not tanked, probably because we never have produced a real recovery from the “Great Recession.”  It would appear that sequestration works well in the “New Normal” to lower Federal deficits and debt without causing major problems.

Yes, there are those who lament losses to the Peace Corps and US Defenses but there does not seem to be a groundswell of opposition to sequestration.  Most seem content to let sequestration fumble through cutting Federal expenditures.  More importantly, it will make measures that are “political orphans” more commonplace.