Punitive failures are a key factor in overcoming strategic differences of opinion resulting from the rise of bias and polarization. While Parliament generally has a political incentive to refuse compromises, to stand with its core constituency and to exploit partisan differences for electoral gains, a default can bring the cost of inaction to an unacceptable level. Neither party wants to risk the fault of a government shutdown, a default on the debt ceiling, large automatic tax increases or benefit cuts. With budget deficits of more than $1 trillion, congressional Republicans supported the creation of a party-to-party deficit commission and then voted on it when President Obama approved it.  In response, Obama created his own deficit committee, chaired by Democrat Erskine Bowles and former Republican Senator Alan Simpson. The 18 commissioners were made up of 12 Republican and Democratic congressional leaders, two presidents and four non-governmental experts. A bipartisan deficit reduction commission can serve several purposes. First, it can break the partisan logjam and focus both parties on finding a solution. Thus, in late 1981, after a year of partisan struggle over the soon-to-be insolvent social security system, Reagan created a bipartisan Social Security Commission bringing together Republicans, Democrats and outside experts to define the political challenge, focus on solutions and create reform options. Although the agreement was reached outside the Commission`s formal negotiations, the creation of a commission enabled these civil and bipartisan negotiations.
President Obama outlines a plan to reduce budget deficits by $3.1 trillion over the next 10 years. Republicans say they will oppose the plan because it involves tax increases. Related Article « While negotiations were often cordial, participants reported underlying partisan tension. Obama was reportedly upset by Republicans using the debt ceiling – and the U.S. threat to disavow its debt – to make budget concessions. Republican negotiators found Obama (and some of his advisers) condescending and professors because he and Jack Lew taught Republicans about political foundations and even conservative policies. As has already been said, it has not been helpful to sit directly at the negotiating table (not from the forefront). Supporters felt that the prospect of an imminent reduction in spending across the Commission, if the Committee`s measures were not adopted, would be sufficiently « in bad taste for the legislator » to encourage them to act and create a « strong incentive for an agreement between the parties ».
 New Jersey Congressman Rob Andrews argued the idea as a way to « avoid a default, » although he expressed concern that it would take too long for lawmakers to learn the « nuances of Medicare and Medicaid » when it comes to complex repayment formulas.  The Commission`s main contributions have been the depoliticisation of social security reform, the common definition of the problem in relation to the solvency objectives to be achieved, without fundamentally changing the structure of the programme – unanimously – and the development of reform options. However, following the Commission`s impasse over solutions, an agreement was reached between the leaders of the Gang of Nine Congress and the heads of administration who met in the home of James Baker, White House Chief of Staff. Their solution – which funded a short-term solution and about two-thirds of the 75-year long-term deficit – was approved by the wider Commission by 12 votes to 3. The Congress then optimized and even extended the reforms (adding a future raising of the retirement age from 65 to 67), before being adopted with the support of all parties and being signed by the President in April 1983. The all-party deficit reduction commission is expected to make at least $1,200 billion in cuts by November.