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In 1981, Margaret Thatcher faced the greatest challenge of her premiership. After nearly two years in office, the British economy was in a bad condition; unemployment had reached levels not seen since the 1930s; the public finances were in the worst condition since 1945. The Economist memorably describes her on 21st March, 1981:"Mrs Thatcher is emerging from her second year of office as one of the most extraordinary leaders in modern politics. Her country is in deep recession. Her Cabinet is not so much divided as bewildered. Her once adoring backbenchers are either mutinous or glum. And she has speaking out against her almost every traditional Tory interest: private industry, the City, the counties, the universities, the senior civil service, the 'defence' establishment.