First Thatcher ministry May 1979. The Winter of Discontent had seen the Labour government's popularity slump during the previous four months, and the opinion polls all pointed towards a Conservative victory. The Tories won the election with a majority of 44 seats and their leader Margaret Thatcher became Britain's first female prime minister. Thatcher inherited some of the worst economic statistics of postwar Britain. The nation was still feeling the effects of the numerous strikes during the recent Winter of Discontent. Inflation had recently topped 20%, and unemployment was in excess of 1.5 million for the first time since the 1930s. Thatcher's monetarist
Margaret Thatcher "Falklands factor", an economic recovery beginning early in 1982, and a bitterly divided opposition all contributed to Thatcher's second election victory in 1983. Thatcher frequently referred after the war to the "Falklands spirit"; journalists Max Hastings and Simon Jenkins suggested in 1983 that this reflected her preference for the streamlined decision-making of her War Cabinet over the painstaking deal-making of peacetime cabinet government. In September 1982 she visited China to discuss with Deng Xiaoping the sovereignty of Hong Kong after 1997. China was the first communist state Thatcher had visited and she was the first British prime minister to visit