Increase In Military Spending

I'm watching the replay of the Republican Debate (nothing else is on). Rudy Giuliani made the point that America needs a stronger military to deter other foreign countries like Russia and China from competing with its power.

He used the Soviet Union break-up as an example and quoted Gorbachev's book that stated Reagan's huge increase in military spending bankrupted the Soviet Union (I'm paraphrasing).

So doesn't that show, Mr. Giuliani, that increasing military spending only incites other countries to support larger armies? That's basic great-power competition (freshman level international politics)

I don't think with China growing economically stronger and with over a billion people that the United States should try to start a competition it surely can not win without heavy losses. China is the future, don't wake the sleeping giant.

(Oh, and Fred Thompson, call it quits)