One could also add that the sequester is throwing around 600,000 people out of work according to the Congressional Budget Office. These are people who have the necessary skills to fill jobs in the economy but who will not be working because people in Washington lack the skills to design policies to keep the economy near full employment.
This is not a policy decision (e.g., these workers are ‘government waste’). Nor is this a case of obsolescence–if the money were spent, they would still do something useful. Potentially, there are reasons, policy and macroeconomic, why one should cut government payrolls. The misperception that we can run out of money is not one of them.