When you don't treat your workforce well you lose high quality workers. Federal workers have lived with almost four years of pay, hiring, and promotion freezes. Many agencies have had furloughs this summer and all are experiencing some level of furlough now. Oh, and a large portion of the public - frothed up by extremists in the GOP - act like the work they do is worthless.
That's not an environment that people with outside options like to stay in for very long, and the people with outside options are the high quality workers.
Kate just heard of a third case of one of the more competent workers in her department leaving for the public sector since the beginning of this sequester mess a couple months ago. No hiring, still. Which means more work for her when she gets back from maternity leave. Precious little appreciation except from some of her superiors who can only show appreciation when they get a chance to catch their breath from all the work there is to do.
It's not a good situation, and the eventual result of all this is that the worst will rise to the top.
Shutdowns, sequesters, pay freezes, etc. make for bad governance.