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I agree with what you said on several things except this.

but if you really wanted to save money, you'd increase the military to where it was before BRAC and clinton hit it instead of wasting SOOO much more money on contractors. A contracted termite exterminator makes 120k a year in iraq, an army exterminator makes 25k (closer to 40-50k with all bonuses etc). with what we've spent on contractors over the price of the old bigger military, we could have kept the bigger military for 25 more years and still be

While I agree a contractor makes more money up front than a person in the service the difference is in the benifits. So we pay a contractor 125 k for two years and we are done paying them but a person in the service will receive benifits for a life time making their cost much, much more. I'm not getting into which way is the best but it is much cheaper to use contractors for alot of jobs.