Liberal Fodder and Job Hugging

The Domino Effect: Financial Risk, Student Loan Stress, and Why Workers are Becoming ‘Job Huggers’

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

Updated on September 30, 2025.

As an attorney and professor who has studied and written extensively on consumer finance, economics, and bankruptcy law, I observe economic policy through a specific lens: how is it all connected?

This perception is no doubt from my experience in consulting with thousands of clients and realizing there’s a problem before the media picks up on it, and government statistics can prove it. It’s the “word on the street” approach. Hearing from clients how bad things are on the ground, and seeing those concerns reflected in government data months later. In my opinion, one barometer to know how the economy is doing, just ask those around you.

So, the “word on the street” or pattern I’m seeing means economic pressure points are joining forces, which means consumer and financial instability is standing at the door ready to knock.

I’m not interested in political labels for the simple reason that the economy doesn’t care which political party you are affiliated with, but it no doubt affects American households, whether it’s job reports or interest rates.

The ‘word on the street’ pattern I’m hearing is that different economic problems are joining forces and will cause financial trouble for people.

Part I: Discontinuing the Data

The Trump administration’s decision to discontinue the USDA’s Household Food Security Report is a clear example of ignoring financial risk. The USDA cited “redundancy,” “costly,” and “subjective, liberal fodder” as reasons for the cut.

Honestly, I find this alarming. Good public policy requires objective data, and if one dismisses a 30-year report on household financial stability as “liberal fodder,” then that is a failure of critical thinking.

Whether you are a Republican or Democrat, ending an essential data source on household vulnerability makes it impossible for national, state, and local governments to adequately prepare for the financial stress heading their way. While rhetorical, here’s a simple question: why not just remove the “liberal fodder” moving forward that way those who need the assistance can get it?

When the Congressional Budget Office estimates that 3 million people may lose access to services, the affects both political parties. The economic impact will increase the burden on state and local governments in both the short and long term.

Part II: The Crushing Weight of Student Loan Debt

The ongoing student loan debt crisis is yet another economic factor we can not run away from. This demonstrates the snowball effect I frequently refer to in my blogs and videos.

With interest and payments resuming under the SAVE plan, coupled with reported administrative errors such as MOHELA’s servicing issues that have, in some cases, seen student loan debt figures double overnight, it is an atomic bomb for credit scores.

Consider the snowball effect in action:

The Credit Collapse: Nearly 6 million borrowers are over 90 days delinquent. A default on tens of thousands of dollars in student debt doesn’t just destroy credit scores; it guarantees a denial on critical financial products like car loans, mortgages, and new credit cards.

The Urban/Suburban Divide: A poor credit score limits housing options. For example, take a recent graduate with a new job in expensive, walkable downtown Miami may be forced into a longer, more expensive commute from the suburbs, or, worse, move into a high-crime area.

It’s all connected! It’s not just about debt, but how it connects to economic mobility, which fuels the next issue.

Part III: The Rise of the ‘Job Hugger’

We are experiencing in real time how sensitive the labor market can be. We are seeing how AI integration and tariffs create business uncertainty. The result? The “Job Hugger.”

Job-hugging sounds great. The words give this illusion of someone loving their job so much that they are hugging it, just like we do with a loved one, but there’s a noticeable difference.

Job hugging refers to an employee choosing to stay put, not out of loyalty, but out of fear. It means career ambitions are shelved, for now. Salary negotiations are delayed. Why add fuel to the fire? And employees face burnout simply to avoid becoming expendable.

These factors, besides stopping career goals in their tracks, it freezes wage growth. It is a clear indicator of widespread financial anxiety. Look no further than my household. Now you know why we are in no rush in relocating cross-country, and as we get older, now wonder if we ever will have that opportunity. What’s the word on the street again?

Part IV: Interest Rate Cuts Are A Symptom, Not a Victory

When I see celebratory social media posts cheering on a 0.25% Federal Reserve interest rate cut, I am reminded of a one-liner from my mother (God bless her soul). She would often say (in Spanish), “Mi cabeza no es solo para sostener mi pelo.” My head isn’t just to hold my hair.

This wisdom reminds us to use our brains for critical thinking, not just decoration. A minor rate drop is not a victory lap. It is a symptom of underlying economic weakness.

Rate cuts are the financial equivalent of taking Vitamin C during flu season: the Fed is trying to prevent the economy from sneezing and spreading the cold. It signals:

Slowing Demand:  People aren’t spending as much, or borrowing is becoming too difficult.

Rising Costs:  The cut doesn’t magically fix skyrocketing grocery and utility bills. It’s a move to stimulate an economy already bogged down by real-world cost pressures.

The Authority Question: If the economy is doing as great as this administration claims, why was there so much political pressure on Fed Chairman Jerome Powell to lower rates? Real economic strength is wage growth, increased productivity, and investments, not in minor interest rate adjustments.

Remember: Your head isn’t just to hold your hair. Look past the headlines and ask yourself how it is all connected.

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