Abstract: The military is failing to adequately respond to its toughest recruiting environment since the establishment of the all-volunteer force. On measures that often matter most to military recruits, such as cash compensation, the military is falling behind civilian wages. This report will tackle this problem of economics, showing why working in fast food, for example, is turning out to be a better option for young adults than is serving their country in the armed forces. The Department of Defense should request a 20 percent pay raise for junior enlisted service members, targeted in the E1–E4 pay grades, with appropriate pay raises for the E5–E9 pay grades as well.