With recent scares over the U.S. debt limit, one must ask themselves what should I know about this. The debt limit is the total amount of debt that the federal government is allowed to have. Currently, the federal government spends more money than it brings in, spending around 20 billion USD every day. The U.S. government is expected to have around 28.43 trillion USD by the end of 2021. The federal government is 22 trillion USD in debt to the public, and the rest is mostly owed to investors and banks. Usually, a compromise is needed between republicans and democrats to raise the debt limit. Reaching the debt limit can have dangerous consequences for the U.S. economy, which can only be described as a widespread economic catastrophe.