"The loss of output and earnings associated with high unemployment ... reduces government revenues and increases spending on income-support programs, thereby leading to larger budget deficits and higher levels of public debt than would otherwise occur," Bernanke said....
Bernanke's comments draw comparison to a year-old paper, "Fiscal Policy In A Depressed Economy," by Berkeley economist Brad DeLong and Harvard's Larry Summers. The paper has received new attention lately.
A sort of antidote to the research of Harvard economists Carmen Reinhart and Kenneth Rogoff, which helped convince Congress to deliver austerity in the first place, the DeLong-Summers paper suggests that extra government stimulus spending in the short term could actually lower government debt levels in the long run.The Huffington Post
But even after the Reinhart-Rogoff view has been discredited, the DeLong-Summers-Bernanke view can't seem to get any traction in Congress.
Bernanke Tells Congress Fighting Unemployment Is A Better Cure For Government Debt Than Austerity