Set in the year 2017, Barb Wire depicts a United States fractured by a Second American Civil War. The country is under the thumb of the Congressional Directorate, a fascist regime that has utilized biological weapons—specifically an HIV derivative known as "Red Ribbon"—to decimate entire cities like Topeka. The narrative centers on Steel Harbor, characterized as the "last free city" in a nation of ruins, which serves as a gritty, industrial hub for mercenaries, criminals, and those seeking to escape the Directorate's reach.

The film’s societal dynamics reflect a complete collapse of traditional American governance and economic stability. In this timeline, the U.S. dollar has become worthless, with citizens and underground entities demanding payment in Canadian dollars. The environment is one of constant surveillance and militarization; the Directorate’s forces, often likened to Gestapo-style troops, maintain control through strict border checks and high-tech enforcement. Earth, or specifically the North American continent, is portrayed as a battleground where the only path to safety is northward toward Canada, which represents a democratic sanctuary compared to the war-torn U.S.

Technologically, the film focuses heavily on biometric security, specifically retinal scanning, as the primary method for tracking and controlling the population. A central plot point involves the use of specialized contraband contact lenses designed to spoof these scans, allowing fugitives to bypass state security. While the film's 2017 prediction of a full-scale domestic civil war did not manifest, its emphasis on biometric identification and the privatization of security (via bounty hunters) mirrors real-world technological shifts toward facial and iris recognition in border and consumer security. Analysis by retrospective critics notes that while the film’s political outcome was divergent, its cynical view of economic instability and the rise of surveillance tech captured emerging 1990s anxieties about the 21st century.