Merry Christmas Federal Government

Merry Christmas Federal Government

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Santa in the Mirror

It was no secret who Santa was for the federal government. Santa came in the form of a Senate vote that raised the debt ceiling for federal spending by $290 billion. This new limit was the scaled down version of the $1.8 trillion that was originally sought. Lawmakers saw a protracted battle coming for the higher amount to be approved and opted for a scaled down temporary fix to get out before the holidays. The $290 billion increase will keep the government going until at least February when another increase in the trillions will be necessary to bridge the feds until the end of 2010.

How they Voted

The vote was 60-39 in favor of the increase almost exclusively down party lines. Debt limit increases only require a simple majority in the Senate: 51 votes. Republicans agreed to a Christmas Eve vote only if all senators voted. This was a strategy employed by Republicans to put the Democrats on record for voting in favor of the increase. The increase raises the debt ceiling from $12.1 trillion to about $12.4 trillion and was necessary because the $12.1 trillion ceiling was about to be breached.

The Ironic Backdrop

There are a few bits of financial irony associated with the latest increase in federal spending. One point of dramatic tension is with the economy in general. The American people continue to struggle under the weight of a sluggish economy. Credit for home loans and other needs remains very difficult for the average citizen to procure. The Senate voting to give the federal government more credit seems out of line with the people's current circumstances. Secondly, American citizens have been told by the government to tighten their belts and ride out the storm until calmer economic conditions return. This flies in the face of continually increased federal spending. Finally, President Obama is expected to address fiscal restraint and propose plans to reduce federal spending. Thos! e proposals will be a tougher sell in light of the increased spending limits associated with the federal deficit. … click here to read the rest of the article titled “Merry Christmas Federal Government“