The tumultuous history of Northern Ireland | Explained

The story so far: On February 3, pro-Irish unity politician Michelle O’Neill from the Sinn Fein party made history by becoming the first Nationalist First Minister of Northern Ireland, after the opposition Democratic Union Party (DUP), the largest pro-U.K. party, returned to government ending a two-year long political deadlock in Northern Ireland.

What led to the political deadlock?

Northern Ireland is governed by a power-sharing agreement known as consociationalism as laid down in the Good Friday Agreement (Belfast Agreement) of 1998. This system believes that power should be shared equally between the various sectarian groups in a state, in this case, between the pro-Irish unity faction, called the Nationalists or Republicans, and the pro-U.K. faction, the Loyalists or the Unionists. Sinn Fein is the largest Nationalist political party, while the DUP is of the latter. The party that wins the largest vote-share will hold the First Minister position while the party with the second largest vote share will keep the post of Deputy First Minister. Of these two posts, one must be a Unionist and the other a Nationalist. Both positions hold equal weight and one cannot exist without the other.

In the 2022 elections, Sinn Fein finished first with a 29% vote share, while the DUP secured the second position with a 21.3% vote share. However, a government was not formed as the DUP exited Stormont (Northern Ireland’s Parliament) because it objected to the new border controls between Britain and the Island of Ireland, which came in the aftermath of Brexit. When the U.K. exited the EU, Northern Ireland became the only province to share a land border with an EU country (Republic of Ireland). The U.K. and the EU then came up with the Northern Ireland Protocol, which stipulated that the trade border, where goods are checked for compliance, would be shifted to the Irish ports, essentially making it a sea border. However, this was rejected by the DUP, which held that this was against the Good Friday agreement which sanctioned free movement of goods and people across borders. In protest, they exited the government and the political deadlock set in.

The U.K. and the EU then drew up fresh rules, called the Windsor Framework, which stated that on arrival at the border of Northern Ireland, goods will be demarcated into two. The ones which were entering the region would go into the ‘green lane’ with no inspections while those entering the Republic of Ireland (EU territory) would go to the ‘red lane’ for compliance checks. After assurance from the U.K. of Northern Ireland’s place in its internal market, the DUP has agreed to return to government.

How did Northern Ireland come into being?

Northern Ireland was the site of a 30-year civil war (1968-1998) known as ‘The Troubles’ between the Republicans and the Unionists, which killed over 3,500 people. It also had a religious aspect to it with the Republicans being mostly Catholic and the Unionists being largely Protestants.

Northern Ireland was formerly part of the Ulster province, which lies to the north of modern-day Ireland. Conflict between the Protestants and the Irish Catholics goes all the way back to 1609, when King James I started an official policy of migration wherein people from England and Scotland were encouraged to move to Ulster to work in his various plantations there. The religious war that was being waged in much of Europe at the time, between the Protestants and the Catholics, made its presence felt in Ulster as well. However, a much stronger resistance was brewing. Ireland at the time was under the rule of England. The growing resistance against the colonial English rule, especially after the Potato Famine of 1845 where over 1 million Irish people died due to disease and starvation, cemented these sectarian and religious differences. Finally, in 1916, in the middle of the First World War, during Easter week, Ireland rose up in arms against colonial rule under the leadership of the Irish Republican Army (IRA). After a bloody war, it was able to gain independence from England with the Anglo-Irish treaty of 1921.

However, Ireland was split into two territories. As there was a protestant majority in Ulster, out of the 32 counties in Ireland, six remained with the U.K, forming the region of Northern Ireland.

What led to the Good Friday agreement?

Peace did not come easy in Northern Ireland. The years that followed were rife with discrimination and instances of sectarian violence. The Irish Republicans being the minority were often victims of discrimination when it came to housing and public service jobs. Moreover, there have also been claims that elections were heavily skewed towards the Unionists due to gerrymandering practices. In the late 1960s, various protests against the Northern Ireland government descended into violence with the IRA and the Unionist paramilitary forces taking up arms.

A civil war had officially started and the British Army was deployed to maintain peace. The Army was often accused of colluding with the Unionists against the Republicans. Walls were built between communities to segregate them, curfews were implemented and dissidents were being arrested without trial. However, violence continued and in 1972, in an incident known as Bloody Sunday, the British Army shot and killed at least 13 unarmed civilians during a protest march in the Bogside area of Derry. In its aftermath, the war spread to the mainland of the U.K. and Ireland, with attacks and bombings orchestrated in London and Dublin.

In the backdrop of the ever-increasing tit-for-tat violence between the IRA and the Unionists, in the 1980s, IRA’s political wing Sinn Fein started taking a more active role in the political landscape of Northern Ireland. It contested elections and played a part in governance. Peace talks were also being negotiated with the U.S. acting as a mediator.

The 1990s brought about a significant shift in the war. The public was weary of violence and wanted peace. Both parties agreed to a ceasefire and peace talks were in full swing. While decommissioning of arms was heavily pushed by the U.K., both the IRA and the Unionists at the time refused to give up their arms entirely. Therefore, talks took the ‘twin approach’ wherein peace and decommissioning was to happen in parallel as a treaty was being reached.

Finally, on April 10, 1998, the Good Friday Agreement was signed in Belfast bringing to an end the 30-year-old civil war in Northern Ireland.

What is the Good Friday Agreement?

The Good Friday Agreement is a unique peace treaty in that it conceded to most of the demands from both sides of the conflict. The treaty had three main aspects — that the Northern Ireland government would be formed on the sovereign wishes of both Republicans and the Unionists and that they would share governance equally; that the people of Northern Ireland could seek reunification with Ireland any time subject to a referendum; and that the citizens of Northern Ireland can seek Irish or British nationality or both. It also abolished border checks and encouraged the freedom of movement of people across the U.K. and Ireland.

However, tensions of the conflict still linger in the region. The power sharing system has not been smooth. Stormont has fallen multiple times before the completion of a term. The Assembly was suspended in 2000, in 2001, from 2002-2007 when Unionists withdrew from the executive and from 2017-2020. In February 2022, the government again collapsed as Unionists withdrew over border controls between the U.K. and Northern Ireland.

What next?

The significance of a Nationalist First Minister cannot be understated. Ms. O’Neill said as much when she remarked that “we are in a decade of opportunity” indicating the possibility of a referendum on the reunification of the region with Ireland in the next 10 years.

However, in a paper released by the U.K. government, it said that it “sees no realistic prospect of a border poll leading to a united Ireland,” citing recent polling. In a similar vein, Irish premier Leo Varadkar, whose government in principle supports a united Ireland, also said the question of reunification was “not for today.”

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‘I worry about outliving my money’: I’m a 65-year-old widow in good health. Should I wait until 70 to collect my pension?

I am a 65-year-old widow in good health, and just started collecting my late husband’s Social Security benefit of $4,000 per month. When I turn 70, I will switch to my benefit since it appears it will be around $100 higher every month at that time. My current expenses are running high at about $10,000 per month due to some house maintenance projects I am doing. My son and his family will inherit everything when I’m gone.

I estimate my monthly expenses will drop to $5,000-$6,000 within the next year. I supplement my monthly income by drawing off interest, dividends and some profit-taking from my traditional IRA account which is worth about $2.5 million. I also have a Roth IRA of about $60,000 and bank CDs of $200,000. I also have another traditional IRA account worth $350,000, which I have designated as my long-term healthcare account in case I have to go into a nursing home at some point. 

‘I’m not sure if it makes sense to wait two to five years to collect my pensions if I am going to be drawing my RMD just a few years later.’

I have two pensions that I am debating about when I should start collecting. If I collect now, I will receive $1,400 per month. If I wait until I am 67 it will be $1,620 and at 70 the pension will pay $2,100 per month. However, when I turn 73 and start my minimum required distributions from my IRA, the annual RMD along with my Social Security should be more than enough for me to live on. 

I’m not sure if it makes sense to wait two to five years to collect my pensions if I am going to be drawing my RMD just a few years later. If I collect my pensions now, then it would reduce the amount of money I need to siphon off of my investments and could leave them relatively untouched for a few more years.

‘Money was always tight for us growing up and a struggle for my parents as they got older and needed healthcare assistance.’

So the question is, should I collect my pensions now and reduce the amount of money I am currently drawing off of my IRA? Or wait a few years and get the higher monthly payout? Everything I read encourages people to wait as long as they can to collect their retirements. My calculations show that if I collect now, my break-even point is about age 82. If I live longer than that, then waiting to collect would pay me more over the long term. Both my parents lived into their early 90s so longevity is a potential concern. 

I realize that I’m in a good financial situation, which is the result of my husband and I working extremely hard all of our lives and consistently saving and investing during good times as well as during recessions, job losses, and raising a family. But money was always tight for us growing up and a struggle for my parents as they got older and needed healthcare assistance, so I don’t think I will ever shake that off. I worry about outliving my money. I just want to make the right decision.

Thank you for your help.

To Withdraw or Not Withdraw

Dear Withdraw or Not Withdraw,

Let’s start with the good news. Whatever you do — start withdrawals now or wait — you are in a pretty strong financial position. If you can afford to wait — and you can — and you expect to live into your 90s, do that. That extra $700 a month will give you comfort as you age. You have $2.5 million in your IRA, and you will pay tax on those withdrawals regardless, but you can afford to use that as a buffer before your higher pension payments kick in. 

A financial adviser will help you crunch your numbers, but $4,000 a month in Social Security is a good start. Cutting your $10,000 monthly expenses to $6,000 is smart, and an adviser can help you see where you could make further cuts in your expenses, especially as you age. For some perspective: This survey found that working Americans ages 45 and older on average believe it will take $1.1 million to retire comfortably, yet only 21% say they’ll reach $1 million. 

Another reason to withdraw from your IRA now? Gains from an IRA, as you know, are taxable. Gains from a Roth IRA are not taxable if the account has been up and running for five years and you are over 59½. One of the big advantages to a Roth is the flexibility it affords. If you have a medical emergency, you could use your Roth IRA as a backup. (CDS are not typically useful for this as cashing out early results in a penalty, which could negate your interest earned over the period of the CD.)

‘Whatever you decide will be the best decision for you at this time.’

Dan Herron, a partner at Better Business Financial Services in San Luis Obispo, Calif., agrees you should wait. “Since longevity appears to be on your side thanks to good genes from your family, it is probably beneficial to postpone taking benefits as long as you can to maximize your pensions,” he says. “The reason being is that given the uncertainty surrounding Social Security, your pension may be your best hedge against any potential Social Security cuts down the road.”

He also sees the tax benefits in siphoning funds from what is already a very healthy IRA. “While you draw from your IRA now, you are reducing the balance of the IRA, which then (potentially) reduces the required minimum distribution amounts,” he says. “This could potentially be beneficial from a tax perspective.” And he suggests staggering your pension benefits, making withdrawals from one in two years, while leaving the other until you hit 70.

Whatever you decide will be the best decision for you at this time. No future is guaranteed, but your No. 1 priority right is peace of mind to secure a long and healthy retirement.


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Readers write to me with all sorts of dilemmas. 

You can email The Moneyist with any financial and ethical questions related to coronavirus at [email protected], and follow Quentin Fottrell on Twitter.

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More from Quentin Fottrell: 

‘How to travel for free’: I spent $500 hosting my friend for a week. Should she have paid for food and utilities?

‘I’m 63 and desperately hate my work’: Should I pay off my mortgage, claim Social Security and quit my job?

‘He’s content living paycheck to paycheck’: My husband won’t work or get a driver’s license. Now things have gotten even worse.



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Joe Biden’s 2024 Menu: The Rich.

President Joe Biden on Thursday rolled out his proposed budget for fiscal 2024, an ambitious plan that would raise taxes on the rich and on corporations while expanding the social safety net. It would cut nearly $3 trillion from the federal deficit over the next decade by imposing a 25 percent minimum tax on the richest Americans. If you want to read the entire 185-page document, have at it!

Of course, it also won’t do a single bit of that, because Republicans won’t pass any of the major parts of the plan, particularly not the tax increases, but also not the social safety net parts like paid family leave, childcare, or Biden’s plan to rescue the Medicare trust fund for at least 25 years.

Not a bit of it will become law except the most routine keep-things-as-they-are parts, which will no doubt end up in yet another omnibus spending bill passed barely in time to avoid a government shutdown. If then. Oh, also, the part that increases defense spending by about 3.2 percent, to over $835 billion, will probably do just fine. But whatever defense budget eventually passes in the fall won’t be accompanied by the tax increases that would make the expenditures slightly less odious.


So why even offer a budget that’s not going to get passed by Congress? For starters, presidents have to submit a budget request in early February (traditionally by the first Monday, but everything moves slow these days) to get the process rolling, and the budget reflects the administration’s priorities, even if the opposition is able to block them. Also, let’s remember that Donald Trump’s budgets, which zeroed out entire federal agencies, were entirely exercises in rightwing fantasy. And yet somehow we still have the National Endowment for the Arts.

So sure, a federal budget is mostly aspirational, and this year, Biden’s budget serves two practical purposes: It sets out markers for where he wants his government to go in a second term (you know, if he runs), and it’s also an opening bid in the negotiations over raising the debt ceiling. Republicans say they want to cut federal spending because the deficits are too high, and Biden’s budget is over here saying “Yeah? You show me how you’d reduce the deficit by $3 trillion in 10 years, ya mooks.”

Former Obama administration official Kenneth Baer, who served in the Office of Management and Budget, explained to the Washington Post,

“As one of the people who has spent many a long night writing and editing a budget, I take umbrage at the people who say it’s a meaningless document. It’s not a meaningless document. […] It sets the terms of the debate. It shows what’s important to you, your commitments and what you really want.”

So let’s take a look at what’s in this thing and what that says about what Joe Biden wants.

The Rich Still Need To Be Eaten

Speaking at a union hall in Philadelphia yesterday, Biden emphasized that his third budget proposal is aimed at “investing in America and all of America,” because “Too many people have been left behind and treated like they’re invisible. Not anymore. I promise I see you.”

To that end, the $6.8 trillion budget plan (over 10 years) includes about $5 trillion in tax increases on the wealthiest individuals and corporations, most of which will go to cover new programs that Biden has previously put forward but that haven’t yet been enacted.

Some specific tax increase proposals may sound familiar because some of them were in the original version of Build Back Better, but were removed after Sen. Kyrsten Sinema said Donald Trump’s 2017 Big Fat Tax Cuts for Rich Fuckwads couldn’t be reversed, not even a little.

  • Raise the corporate income tax rate from 21 percent to 28 percent, which would still be lower than the 35 percent rate prior to Trump’s 2017 cuts. It would also raise the tax rate on foreign earnings from 10.5 percent to 21 percent, to reduce the incentive for companies to move operations out of the USA.
  • Repeal Trump’s tax cuts for the wealthiest Americans by returning the top marginal tax rate to 39.7 percent from the current 37 percent. This would affect taxpayers making $400,000 a year for individuals, or $450,000 married filing jointly.
  • Tax capital gains the same as income for people making over $1 million, and close the carried interest loopholefor chrissakes finally.
  • Increase the surtax on corporate stock buybacks from one percent to four percent
  • A new minimum tax on billionaires, assessing a 25 percent minimum tax on all income of the wealthiest tenth of one percent of Americans. That’s a follow-up to the minimum corporate tax that was included in last year’s Inflation Reduction Act.
  • Raise Medicare taxes on those making more than $400,000 a year, and make more types of income eligible for Medicare taxation. We detailed that plan right here. Medicare would also be able to negotiate prices on more prescription drugs sooner, creating additional savings that would go to the Medicare trust fund.

Nice Things We Need

The budget also includes some domestic programs that were good ideas when they were proposed in Build Back Better, and were still good ideas when Joe Manchin demanded they be removed from Build Back Better. A few have been downsized for the budget plan, which also adds some items that weren’t in BBB.

  • Restore the enhanced child tax credit and make it permanent. Hell yes. It markedly reduced child poverty in the US, and it’s damn near criminal that it was allowed to lapse. Also way better for America’s children than allowing them to work in meatpacking plants.
  • College affordability. The budget calls for higher maximum awards for Pell grants and for a $500 million grant program to make two years of community college free — not quite the full free community college program Biden originally ran on.
  • Universal Pre-K and affordable child care. Not quite the full programs proposed in Build Back Better, but as CNN summarizes, this would fund “a new federal-state partnership program that would provide universal, free preschool. The spending plan would also increase funding for existing federal early care and education programs.”
  • Paid family and medical leave — another big priority that still needs doing. 12 weeks of paid family and medical leave; for fuckssake let’s get this done. Yeah, in 2025 after we retake the House and expand the Senate majority.
  • More free school meals. During the pandemic, we gave every kid eat. The Biden budget would provide $15 billion to enable wider free lunches, though hey, since it’s a wish list, why not just say we want universal free school lunch? Kids learn better if they’re not hungry.
  • Make the IRA’s Obamacare subsidies permanent. The enhanced premium subsidies, which started out as part of the American Rescue Plan, have helped reduce the percentage of Americans without healthcare coverage to record lows. But they’re set to expire in 2025.
  • Reduce maternal mortality. It’s still a crisis, with far greater rates of maternal mortality for Black women than for white women. The budget calls for $471 million in funding to expand maternal health care, particularly in rural areas. It would also require all states to provide Medicaid postpartum care for 12 months instead of the current 60 days.
  • $35 per month insulin for all Americans. It was included in the IRA for folks on Social Security, so let’s make that the standard for those on private insurance or who have no insurance at all. It’s literally a matter of life or death.
  • Lower prescription drug prices for seniors. The IRA put a $2000 cap annual on out-of-pocket costs for Medicare beneficiaries (going into effect in 2025). Biden wants to further limit copays for generic prescription drugs for chronic conditions to $2.

Yes, We Still Need Climate Spending

While the Inflation Reduction Act was the biggest American investment ever in fighting the climate emergency, Biden’s budget proposal also recognizes that there’s a lot more that needs doing, so it calls for still more funding to move America closer to reaching our Paris climate agreement goals. We want to wrap this sucker up, but take a look at this CNBC piece for more details on how the budget would expand our transition to clean power and cutting carbon emissions. Among the basics:

$24 billion for climate resilience and conservation

$16.5 billion for climate science and clean energy innovation

$6.5 billion for energy storage and transmission projects

$4.5 billion for jobs building clean energy infrastructure

$3 billion for advancing adaptation finance

$1.8 billion for environmental justice initiatives

$1.2 billion for the Energy Department’s industrial decarbonization activities

Want even more info? I’m leaving a tab open with the White House fact sheet on the budget’s climate priorities, because this is what the agenda for keeping the planet habitable should look like.

So those are some darn good priorities — and a blueprint for the 2024 campaign, too.

And now, back to two years of hearings on Twitter and Hunter’s laptop. Total waste of time, but they may help make a very strong case for not letting Republicans anywhere near power again.

[2024 Budget of the US Government / WaPo / CNBC / NYT / CNBC]

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