Now that the Sequester (cut to military spending) has been postponed for two months, it's less talked about, but actually a military cut similar to the Sequester (but combined with a new reduced military mission and replacement domestic spending programs) makes a lot of sense.
Be sure to click on the above link to see the graph.
The Sequester would not even bring military spending down to the level toward the end of the Clinton Administration, when the economy was creating more jobs than ever, lowest unemployment, and median income rising much more than it has anytime else in recent history. Some are now saying that the good times then could be attributed partly to a peace dividend.
The rise in real military spending under GW Bush in fact is unparalleled in the entire post WWII history, exceeding even the levels reached during the Korean and Vietnam war eras. It would take a huge cut now to get us back to average Cold War levels, which are still way beyond what we actually need.