There has been a vast shift in federal spending priorities since the late 1960s when defense spending and non-defense spending, other than interest, were of about the same magnitude. Today, non-defense spending is four and one-half times larger than federal spending on defense. Both defense and nondefense spending are up sharply in the last couple of years.
http://www.cato.org/fiscal/2002/factsfigs.html
Sure. Entitlements and transfer payments will continue to increase unless there is serious reform. I think the current CBO projections have federal outlays eating up nearly 40% of GDP by 2050, based on programs like Medicare and Social Security keeping their current benefits structure. That's pretty clearly untenable, no matter how you slice it, so reforms are coming sooner or later - the only question is how long we're willing to wait, and how high our pain threshold goes.
So, you're quite right in pointing that out, but I would respond that this is a problem that we will either solve, or it will solve itself by breaking the nation's back, so don't stress about it too much ;)