When Nixon took office in January 1969, the inflation rate had reached 4.7%, the highest rate since the Korean War. Johnson's Great Society programs and the Vietnam War effort had resulted in large budget deficits. There was little unemployment, but interest rates were at their highest in a century. Nixon's major economic goal was to reduce inflation; the most obvious means of doing so was to end the war. As the war continued, the administration adopted a policy of restricting the growth of the money supply to address the inflation problem. In February 1970, as a part of the effort to keep federal spending down, Nixon delayed pay raises to federal employees by six months. When the nation's postal workers went on strike, he used the army to keep the postal system going. In the end, the government met the postal workers' wage demands, undoing some of the desired budget-balancing.
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