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 economic downturn, as defined by two consecutive quarters of negative economic growth, automatic stabilizers may operate without constraint on deficit spending.

Congress may override these requirements only by a three-fifths (⅗) majority in both chambers for declared war, natural disaster, or economic emergency, with automatic sunset provisions not exceeding two years.

The specific implementation formula, cyclical adjustments, and enforcement mechanisms shall be established by statute within one year of this Charter’s ratification.