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How will your Christmas spending be different this year? (PHOTO CREDIT: GETTY IMAGES)

FROM CNN's Jack Cafferty:

With Black Friday right around the corner - retailers are hoping for a better Christmas shopping season than last year.

And there are some glimmers of hope:

One survey shows Black Friday shopping is expected to pick up more than 16 percent. The National Retail Federation says 57 million people say they'll definitely head to the stores this year - that's up from 49 million last year.

Some stores even plan to extend hours on Friday so people have more time to get in on the "door-buster" deals.

A new Gallup Poll shows consumer spending is up 11 percent from the prior week... Even more impressive is the comparison to the same week last year. Spending is down 7 percent–that's the smallest year-to-year decline so far in 2009.

That's something when you consider consumer spending makes up two-thirds of the U.S. economy.

There is also a big difference in how people say they plan to pay for their Christmas shopping this year. The same retail group reports an increase in the number of consumers who say they plan to use cash, debit or check cards. Credit card use is expected to drop by 10 percent.

The reasons include credit card companies reducing consumer’s credit lines and customers’ trying to lower their own debt as the recession drags on.

Here’s my question to you: How will your Christmas spending be different this year?

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FROM CNN's Jack Cafferty:

In the midst of a recession, the federal government announced plans to build a massive headquarters for the Department of Homeland Security.

The 3.4 billion dollar construction project will be one of the largest in the Washington, D.C. area since the Pentagon was built in the 1940s.

St. Elizabeth's Hospital in Washington, D.C.

But this comes at a time of economic crisis. President-elect Barack Obama has issued a dire warning about the economy and has vowed to slash the federal budget.

So does the Department of Homeland Security really need a complex on a 176- acre site perched on a hill with panoramic views of the nation's capitol? Currently the department's 14,000 employees are scattered all across the Washington, D.C. area. Maybe the problem is just bad timing?

The location is on the grounds of St. Elizabeth's Hospital, a national landmark because it's where the first federal psychiatric institution was established in 1852.You can do your own joke here.

Historic preservationists have spent years arguing that the project will ruin the site and the National Park Service is still opposed.

It's not a done deal quite yet. The project still needs approval from Congress. If it moves forward, construction, which would last until 2016, would create 26,000 jobs.

Here’s my question to you: What does it mean that a $3.4 billion federal construction project can get approved during an economic crisis?

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FROM CNN's Jack Cafferty:

As a country, we are beyond broke. The Congressional Budget Office says the deficit this year will top $1.2 trillion. President- elect Barack Obama wants a stimulus package on his desk in the neighborhood of $800 billion shortly after he takes office. Predictions are that the federal deficits will exceed a trillion dollars for "years to come."

How can we cut spending?

Obama has a tough task: preach fiscal discipline to try to get Republican support (not that they've practiced anything approaching fiscal discipline for the past eight years), while at the same time, expanding health care coverage and investing in alternative energy.

The President-elect continues to talk about cutting federal spending, eliminating things from the budget, and so on. But the fact is that meaningful cuts are tough to come by. Unless you take a cleaver to defense and entitlements - Medicare and Social Security are the fastest growing drains on the federal budget - there's just not a lot of meat on the budgetary bone to trim. Plus government workers are civil servants who can't be fired.

At a news conference, Mr. Obama did say he'd talk about entitlements but not until next month.

Here’s my question to you: How would you go about cutting federal spending?

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(PHOTO CREDIT: GETTY IMAGES)

FROM CNN's Jack Cafferty:

The worsening economy is forcing half of Americans to cut back on spending.

A new Gallup poll shows 51% of those surveyed say they and their family have had to make significant cuts, while 49% say they haven't – yet.

It comes as no surprise that those being squeezed the most are lower income families. 70% of those who live in households earning less than $35,000 a year say they've trimmed their spending. That's compared to 51% of people who make between $35,000 and $75,000 dollars. Only 36% of those making more than $75,000 a year have cut back.

The top way for people to save money is by driving less, or buying less or cheaper gas – no surprise here with the national average now at $3.67 a gallon. Next, people say they're cutting back on travel and vacations, followed by food and groceries. Other ways Americans are saving include spending less on entertainment, eating out less frequently or buying only necessities.

Meanwhile, a separate USA Today-Gallup poll just out shows that record high gas prices are forcing Americans to drive less for the first time in almost three decades. People are making major changes in their driving habits – things like running fewer errands, taking steps to boost gas mileage, or seriously considering getting a more fuel-efficient car.

Here’s my question to you: Is the economy forcing you to cut back on spending?

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