C.2. Debt Reduction

When debt held by the public exceeds sixty percent (60%) of gross domestic product (GDP), systematic reduction is required during periods of economic expansion, but must be managed to avoid extreme shocks to the broader economy.

During an economic downturn, recognized by a joint resolution of Congress passed by a three-fifths (³/₅) majority, or during a declared war, there is no requirement for debt reduction.

Absent these unusual circumstances, whenever the debt ratio is higher than the trigger threshold, Congress must structure spending such that debt is reduced between one percent (1%) and five percent (5%) of Gross Domestic Product, each year until the debt is below sixty percent (60%).