I've got to think a reduction in scence in academic sphere's will at some point begin to hurt the business private sector. Between the brain drain and lack of innovation it will eventually hurt our economy. How long until we see the effect? That remains to be seen.
Like Fareed points out, one of the historical shifts in America becoming a leader in science were the Jewish scientists forced out of Europe. Certainly scientists won't be forced out of the US due to their religion, but this time it may come down to opportunity and recruitment from other countries. Hopefully the private sector can keep our best and brightest in the country because it seems the universities will continue to lose funding to support their salaries and research.