By Liz Halloran

NPR

July 11, 2011

Liz Halloran: Republicans have been citing polls that show Americans are not convinced that raising the debt ceiling is an imperative. The president says he believes that if the question were asked differently he could get a majority to say it is. What does seem undeniable is that Americans are, frankly, bewildered. So let's start with this: Do you believe that increasing the nation's borrowing capacity by the Aug. 2 deadline is an economic imperative, and why?

Steve Bell: Absolutely. Here's one example: We have 1.9 million government civilian employees. Our analysis has found that in the absence of a debt ceiling increase, more than half will lose their jobs overnight. That money is money you can stop paying. What is happening in Minnesota will happen here in spades. This is not a disagreement like last year's debate about the continuing resolution to keep government running. When the United States government issues all this debt, people trust it. They believe it's going to be paid back on time and in full. That reliability means they consider our debt the most riskless thing they can invest in. By not doing a debt increase, or doing it badly, it looks like we won't be as reliable in the future. There will be higher interest rates; it will cost the country jobs and prolong the recession.

Read the full interview here

---

Economic Policy Project