To be honest, I don't think current military pay is too low.
An average 37 year-old O-5 has a lifestyle equivalent to a civilian counterpart making over $100,000 per year. Housing, complete family medical, dental and eye care, taxpayer supported and tax free commissary and exchange and recreation facilities (golf courses, bowling, swimming pools, state-of-the-art fitness centers) only base pay is subject to income tax, etc.
Fort Ord has a better golf course than Pebble Beach, for heaven's sake.
I know an overseas stationed O-6 who clears $12,000 month and is taxed on only 1/3rd of that and still lives rent free in a magnificant home (some would say a mansion). Sheesh, every one star (do you how many flag rank officers there are?) even has a government paid maid now. They are bloody aristocrats.
Not a bad life now. When I was in, we got paid in cash every month, it was so little.
