The problem with rebutting arguments from Neoconservatives is that their arguments are based on so many false premises, your rebuttal has to be ten times the length of the original article.
So let's just stick with the first paragraph. The huge spend-down in converting from the WWII military economy to the post-war peacetime economy launched the post-war economic boom, with 1946 being one of the best years of true economic growth ever recorded. This cutting of government spending finally ended the Great Depression that had started a decade and a half earlier. If only we had stayed the course!