If you look around your house, what you will find is that just about every appliance with a metal case has a three-prong outlet. This may also include some things, like your computer, that have a metal-encased power supply inside even if the device itself comes in a plastic case. The idea behind grounding is to protect the people who use metal-encased appliances from electric shock. The casing is connected directly to the ground prong.

Let's say that a wire comes loose inside an ungrounded metal case, and the loose wire touches the metal case. If the loose wire is hot, then the metal case is now hot, and anyone who touches it will get a potentially fatal shock. With the case grounded, the electricity from the hot wire flows straight to ground, and this trips the fuse in the fuse box. Now the appliance won't work, but it won't kill you either.

What happens if you cut off the ground prong or use a cheater plug so you can plug a three-prong appliance into a two-prong outlet? Nothing really -- the appliance will still operate. What you have done, however, is disable an important safety feature that protects you from electric shock if a wire comes loose.