The idea of Veteren's Day is to honor people who served in our military. This is all well and good--even as it may appear to be self-serving, I am all for it.
But why is it a Federal holiday? The largest group of people who get the day off are public employees. They range from generally to overwhelmingly left of center. It is also well-known that the ranks of the military have long been right of center.
So we honor veterens by giving a day off to mostly people who never served.