It is very unclear what will happen next. The Army has comfortably exceeded a June recruiting target drastically cut from a few months ago (achieving about 30% less than the 8000+ it once targeted). Many soldiers with 12+ years (when getting out is financially insane) are getting out rather than returning to Iraq. There is no hope of making the annual target of 80000 -- it would require 11,000 recruits/month, far more than the capacity of boot camp and 80% higher than June, the most favorable month of the year (due to high school graduation).
The obvious solution is to pay more. The dark secret is that the military has paid better since the mid-90s than civilian jobs with comparable education. And recruiting people in financial crisis brings with it a whole set of challenges (especially in the military where its hard to get rid of unsuitable people).
The answer: to get us through this war, we need a new GI bill. A private college education in exchange for a two year tour. (6 months of training, 18 months in Iraq).