Just in case nothing jumped out at you about the graph, take a look at the one I made below, which shows the exact same data, but in the correct proportional scale:
Somehow, the impending doom seems less scary, particularly in light of the ending of two wars and reduction in active duty personnel. Using grossly distorted graphics to scaremonger about defense cuts is pure propaganda.
Of course, the cuts ought to be made intelligently, and with an eye towards maintaining an appropriate level of preparedness. But the notion that more is always better is just as foolish in the Defense Department as it is in every other part of the budget, and I get a little tired of people who think it is somehow "conservative" to always wail for more spending on the Armed Forces.