I would expand our commitment to veterans, and then cut it down to a peacetime force. Interventionism would end except in the direct of circumstances. I'd use the savings to nation build here in the states.
"A nation can survive its fools, and even the ambitious. But it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and carries his banner openly. But the traitor moves amongst those within the gate freely, his sly whispers rustling through all the alleys, heard in the very halls of government itself. For the traitor appears not a traitor; he speaks in accents familiar to his victims, and he wears their face and their arguments, he appeals to the baseness that lies deep in the hearts of all men. He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of the city, he infects the body politic so that it can no longer resist. A murder is less to fear"
Cicero Marcus Tullius
I would increase military spending, but only in areas where it is needed: soldier pay and benefits, and technological advancements. I am a Democrat, but I believe, as I have stated in other threads, that we must maintain the most powerful military in the world so that we do not have to use it. Simply put, if we are strong enough, no one will challenge us.
Now, that being said, I also feel that we should not use that might in order to just gain access to oil reserves and the like, but rather to defend our values of freedom and human rights around the world.
Decrease it by at least half. Even with half of the resources we would still have the wherewithal to put together a massice military force in time of need.
Dangerous world out there. You arent going to stand up an army when you need it. When you need it it will already be too late.
"Water is wet, the sky is blue, and old Satan Clause...he's out there and he's just getting stronger. Be prepared. That's my motto."