Liberal Preppers: Preparing for Financial Uncertainty

Today’s post takes a slightly different angle as I focus on financial chaos in 2026, especially as it relates to the rise of “liberal preppers” and the growing instability tied to the Trump economy, particularly the tariff-driven disruptions. Before we get into that, let’s start with the idea of chaos itself.

By Alexander Hernandez, J.D., Professor, and Author of Consumer Bankruptcy Law (Routledge).

Updated on February 17, 2026.

Listen: The Professor’s Audio Briefing.

How Do You React to Chaos?

Think about the last time you walked into a store where everything was scattered on the floor or shoved randomly onto shelves. You had to dig through piles just to find what you needed. Did you enjoy that experience? Probably not.

Chaos might make for great entertainment, we can enjoy it in shows like The Walking Dead, but in real life, chaos is exhausting. Imagine going to work every day and never knowing what disaster is waiting for you. Humans crave structure. We function best when things are organized and predictable.

That’s why the current 2026 “chaos economy” matters. The Trump-era tariffs, which I’ve discussed in earlier posts and videos, injected uncertainty into the system. Uncertainty creates instability, and instability is just another word for chaos. And now, in 2026, we’re seeing the consequences play out in real time: Ford has reported more than $8 billion in losses, and Mercedes-Benz has posted $1.5 billion in losses , both tied in part to the ongoing tariff environment. Bankruptcies have surged, 76% for businesses last month, with figures comparable to the Great Recession when it comes to layoffs.

What Instability Feels Like

Back in 2008, during the mortgage foreclosure crisis, I was talking with my former employer, an immigration attorney I worked for during college. I told him, “This is so stressful. I don’t know what tomorrow’s going to bring.”

He replied, “You know who’s not stressed out? My immigration clients.”

At first, that made no sense to me. I was practicing bankruptcy and family law, both fields full of people under intense pressure. Why were his clients different?

He explained that many of his clients from Latin America were accustomed to political instability. In some countries, a new president comes in, things improve, money flows, and people spend. Then another president takes office, instability returns, and people pull back. That cycle becomes normal.

And in 2026, we’re seeing a version of that instability here.

The chaos surrounding immigration enforcement has escalated dramatically. ICE detentions have surged, with large numbers of individuals with no criminal records being detained or arrested, including U.S. citizens, even journalists such as Don Lemon, being swept up in enforcement actions.

The rapid expansion of detention facilities has driven up costs for taxpayers. DOGE predicted $2 trillion in cuts. That number was drastically reduced to $200 billion plus, and even that is being denied by economists. Today, we owe $2.4 trillion more than a year ago. And what fraud did DOGE find?

Uncertainty has discouraged travel, contributing to a steep decline in tourism. States that rely heavily on tourism dollars, like Florida and Nevada, are now seeing rising foreclosure rates as local economies absorb the shock.

Even legal immigration has been disrupted. H‑2A visa approvals have dropped sharply as employers struggle to navigate the chaos, leaving farms understaffed and supply chains strained. The ripple effects touch everything from food prices to small business operations.

We’re not used to this level of instability in the United States. But chaos creates political instability, which always creates economic instability. Chaos and economics don’t mix.

The Trump Tariffs Are Taxes to the Consumer

The Trump tariffs remain a serious financial concern as we move into 2026. I keep saying: be prepared. I hope everyone earns more money. I hope the economy becomes the strongest in the world. But historically, a tariff is nothing more than a tax. And like every tax, it eventually lands on the consumer. It won’t be the importing or exporting companies absorbing the cost; it will be us. The Tax Foundation stated $1,000 was the cost to the average household, with $1,300 more for this year. Per the Tax Foundation, it is the largest US tax increase as a percent of GDP (0.54 percent for 2026) since 1993.

Student loans are part of the same financial picture. I recently posted on social media about how many borrowers have had their loans discharged under the Biden Administration. People get upset about that, but it’s important to remember that the Public Service Loan Forgiveness program was signed into law by President George W. Bush. So blaming Biden for its existence doesn’t make sense; he simply cleaned up a system that was already in place. Still, the student loan issue ties directly into the broader theme of financial chaos.

Part of what some people call being a “liberal prepper” in 2026 includes buying certain products or not, and pulling back as much as one can financially, such as avoiding getting into debt by buying non-essential goods.

The math is simple: $1,000 more in expenses last year, $1,300 more this year. How do we make up those differences? Mind you, this is an increase in costs for the same products you always buy. Now factor in aggressive student loan collections, and you either have to cut expenses equal to those increases or raise your income. Both are easier said than done.

Are You a Liberal Prepper?

With everything happening in 2026, a year later the question remains the same:  Am I a liberal prepper? I’m not talking about the doomsday prepper stereotype, the bunker‑building, end‑of‑the‑world, Walking Dead version. Not that guy, although billionaires do seem to have bunkers. But apparently, I fit the description of a “liberal prepper.”

And it turns out liberal preppers weren’t only buying cars ahead of potential tariff increases or avoiding certain purchases, but maybe investing in solar panels since federal rebates under the Big Beautiful would decimate the industry; a prediction that was correct on my end.  

Vaccines weren’t on my mind at first, but I understand the concern now. With Robert F. Kennedy Jr., a well-known critic of vaccines, who is a lawyer, not an infectious disease scientist, leading the Department of Health and Human Services, and recently mentioned on a podcast snorting cocaine from toilet seats, liberal preppers rushed to get COVID‑19 vaccines and boosters. Meanwhile, Google “measles outbreak.”

The Trump Tariff Lies Have Never Stopped

I got hit hard with COVID‑19 back in December 2019. I stayed consistent with the vaccines from 2021 through 2023, skipped 2024, and ended up getting hit hard again. And just as I was recovering, Hurricane Helene arrived and knocked out my power for twelve days.

September was a lost month. If you look at my blog posts or videos, there’s nothing; I was completely out of commission. After recovering from COVID the second time, I decided I’d get another booster. But now, in 2026, the entire conversation around vaccines has shifted again.

With new leadership already in place and public health policy moving in a different direction, many people are simply trying to make decisions while access and guidance still feel predictable. For example, RFK says avoid vaccines, while Dr. Oz says take them!

We probably never imagined having to think about this or wade through the waves of misinformation and disinformation, but here we are. In hindsight, maybe my colleague’s immigration clients were the original liberal preppers, the ones who learned long ago how to navigate instability.

Liberal Prepper 101

We should continue to hold back on major expenses until things stabilize, as I started to do last year. My visits to Home Depot ended, and as I have said in prior blogs and YouTube videos, now is not the time to spend $4,000 on an RV/carport or relocate. My wife and I last year decided to give another try at relocating west to Colorado or New Mexico, but ultimately, we stuck with the old proverb: “Better the devil you know than the devil you don’t.”

It takes time to feel the pain of the economy, usually a year or more, and here we are. Credible economists and journals stated that  President Trump inherited one of the strongest post‑COVID economies in the world, especially compared to countries already in recession. But even with a strong starting point, history still matters. As George Santayana famously said: “Those who forget their history are condemned to repeat it.” Just ask farmers with bankruptcy filings spiking under both Trump presidencies, resulting in bailouts each time.

It feels like three decades ago, but I haven’t forgotten the chaos that unfolded during Trump’s first term. The “Muslim ban” in his first week created immediate global confusion. People all over the world were stranded at airports. Even the legal system was thrown into turmoil as the Supreme Court held emergency hearings that the public could listen to by phone, something I don’t recall happening before. All of it stemmed from chaos.

And instinctively, when people see chaos, they retreat. If you’re walking down the street and see people running, shouting, or fighting, you don’t jump into the middle of it. You step back. You assess. You wait before making your next move.

That’s human nature, and in 2026, it’s becoming our financial nature too.

Financial Chaos Helps No One, not Even Liberal Preppers

Now, take everything mentioned in this article: political instability, economic uncertainty, regional tension, and apply it to your personal finances. Learning about bankruptcy, debt financing, debt restructuring, mortgages, refinancing, and all the topics I cover isn’t about fear. It’s about being prepared.

I learned that lesson the hard way.

Back when the economy was booming before the 2008 mortgage foreclosure crisis, I kept telling people that the housing bubble wasn’t something to celebrate. If you’re not selling your house, what does it matter if it’s worth more on paper?

When your home value rises, your taxes rise. Your insurance premiums rise. None of that is a good thing. And while I was warning others, I wasn’t paying attention to my own situation. I was so focused on running a law practice that everything else became a blur,  until the mortgage lender sent me an escrow shortage letter for $1,500 per month.

That got my attention! I guess I was a liberal prepper not prepared.

Where was I supposed to find an extra $1,500 every month? Or anyone else, for that matter?  I went into debt trying to keep up. And when Hurricanes Katrina and Wilma caused major damage to my home, it was time to walk away. Those were hard lessons, but they shaped the way I think today.

And that’s why I keep saying: be prepared.

The Truth Behind Trump Tariffs and Debt Management

I’ve made several YouTube videos and blog posts about the Trump economy. Everyone’s financial situation is different. Maybe a new car loan isn’t a problem for you, even if your expenses increase. Maybe higher student loan payments won’t affect your budget. If that’s the case, more power to you.

But if you believe your student loan payments will increase, and many borrowers do, is now really the time to take on a new car loan? Trust me, I’ve been there, and I’m still there. I faced this issue last year on whether to buy a sit-down lawnmower now or wait. I had to go through with my purchase but sometimes, the smarter move is to hurry up and wait.

What to Expect in 2026

Political instability leads to chaos, and chaos leads to financial instability. It’s a cycle. And now, in 2026, it makes sense why my colleague’s immigration clients used to retreat financially during uncertain times.

No one willingly walks into chaos. The instinct is to step back.

We’re already seeing how political instability creates economic ripple effects. Tariff threats have led to counter-threats from Canada and Mexico. Threats create more threats, it’s that simple. And the financial markets respond accordingly.

So the question becomes: Are you a liberal prepper?

The Professor’s Conclusion

We’re now a full year into the Trump presidency. The policies are shifting, and the economy is not doing as well as the White House is claiming. Just look at the most recent job data which was revised downward by more than 1.1 million. The largest correction in years. That’s not a tweak, but a sign of instability.

If you haven’t been retreating, now is the time to do so. If you did, hold your position.

Analyze your situation. Look at your income, your debt, your expenses, your risks, and your opportunities. Then make your next move from a place of clarity, not chaos.

Remember: Those who forget their history are condemned to repeat it.

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