Except that was 30 years ago, a very different ballgame now. If anything, the Falklands proved just how dangerous an ASM can be, and that was 30 years ago when missile technology was at its infancy. Nowadays you have cruise missiles (like the Russian SunBurn) that can be launched hundreds of miles away from a land based tractor-trailer and because they fly at supersonic speeds they are currently impossible to intercept. As of right now, there is no air defense system capable of stopping a Kh-41 once its in flight. And the Kh-41 has plenty of operators including Iran, which is something the USN might want to think about if they are planning a military adventure over there.
The Argentineans had less than 6 Exocets in their entire arsenal. Of the 6, 2 destroyed their targets (HMS Sheffield and HMS Atlantic Conveyor) and one severely damaged another (HMS Glamoran).
If the Argentinean had they had a few more they very well might have blown the RN right out of the water. You were utterly defenseless against such an attack. And I am not saying that as a slam against the British, any Navy (including the US) in that situation would have been in mortal danger.
As for Defense Budget. Allow me to quote Dwight D Eisenhower:
"Every gun that is made, every warship launched, every rocket fired signifies in the final sense, a theft from those who hunger and are not fed, those who are cold and are not clothed. This world in arms is not spending money alone. It is spending the sweat of its laborers, the genius of its scientists, the hopes of its children. This is not a way of life at all in any true sense. Under the clouds of war, it is humanity hanging on a cross of iron".
In other words: The money we waste on Defense could be better spent elsewhere, and this was from a person who was an expert in the field of military science.
Right now, America spends on Defense more than the next 15 countries do...combined..
Spending on defending your country is one thing, running the entire country's economy into the ground (as the US is now) to support the military supermachine is quite another.
And I haven't even got into how much is being wasted on utterly useless projects, hugely expensive White Elephants not worth a damn on an actual battlefield. What people don't understand about Defense is that it has nothing to do with defending your country and has to do with supporting a Multi-Billionaire dollar industry which employs thousands of people. What politicians are afraid of are defense cuts that can affect their re-election donations campaign from companies like (Lockheed, Honeywell, Boeing, GE) and also if their are cuts, that those cuts dont happen in their district as that creates unemployment which they will get blamed for.
And has nothing to do with defense, and everything to do with money and power.