The United States is showing economic and political traits increasingly reminiscent of Italy, according to recent analyses comparing the two nations. While corruption levels remain lower than in many emerging markets, both countries have reduced efforts to combat it, contributing to growing public cynicism and political instability.

Transparency International’s latest Corruption Perceptions Index rated the United States at 64 out of 100—the lowest score it has received—while Italy scored 53. Both are criticized for weakening anti-corruption measures, with Italy resisting legislation criminalizing abuse of power by public officials, and the Trump administration notably undermining the Foreign Corrupt Practices Act. This erosion in governance has been linked to democratic decline. A 2026 report by V-Dem highlights both the US and Italy among Western countries experiencing significant backsliding in democratic standards. Similarly, Freedom House notes notable trends toward more autocratic tendencies in each nation’s political economy.

Public perception reflects this shift. Recent surveys indicate that 89 percent of Americans now consider government corruption widespread, a marked increase from 60 percent in 2006. This growing disillusionment aligns with economic challenges disproportionately impacting younger generations.

The US labor market increasingly resembles the bifurcated system long present in Italy and other European countries, where older workers occupy stable, well-paying roles while younger individuals face higher unemployment and fewer opportunities. Data from a September jobs report show unemployment rates of 7.1 percent for Americans aged 20-24, compared with 3.6 percent for those 25-54 and 3 percent for workers over 55. Italy's youth unemployment remains significantly higher at about 20 percent, but the pattern of younger individuals struggling more than their senior counterparts parallels the American experience.

Socioeconomic mobility in the US also mirrors that of Italy, where factors such as family background and social class heavily influence life prospects. Research by economists like Raj Chetty suggests the US is increasingly reflecting “Old Europe” dynamics, where one's birthplace and parentage markedly affect economic outcomes.

Emerging technologies such as artificial intelligence may exacerbate these divides. Recent Census Bureau research indicates that graduates entering AI-exposed industries could face reduced employment prospects and lower earnings relative to those in less impacted sectors. Paradoxically, older workers with established experience appear better positioned to benefit from AI advancements, while younger job seekers encounter greater disruption.

These economic and political challenges could fuel further populism, deepening divides between generations and political factions in the United States and Italy. Italy has navigated such cycles repeatedly and currently experiences stronger employment and export figures. The US, however, may be at an earlier stage of grappling with the consequences of institutional and economic dysfunction, raising concerns about the long-term trajectory of its domestic cohesion and global standing.