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Mythbusting Japan’s Low Poverty Rate

SNA (Atlanta) — Although Japan is commonly thought to have one of the lowest poverty rates among G7 nations, the actual figures tell a different story, puncturing a myth that remains dear to some Japanese conservatives and other observers.

According to the most recent data available, Japan’s poverty rate stands at 15.7%, which is higher than Canada’s 12.1% and France’s 13.4%. Overall, the average poverty rate among G7 nations is 16.3%, not much higher than Japan’s figure.

However, it is important to note that poverty rates are measured differently in each country, according to their own criteria.

The nature of Japan’s ‘relative’ poverty rate was discussed in the report Income Inequality, Poverty and Social Spending in Japan, released by Randall S. Jones, the head of the Japan/Korea Desk in the Economics Department of the Organisation for Economic Co-operation and Development (OECD), in 2007. This report highlighted the fact that Japan’s poverty line is set as “an income that is 50% less than the median [income].”

In other words, poverty in Japan is not measured by any relationship with the ability to survive and prosper in society, but rather only in relationship to average incomes in the country. What the government statistics show us about poverty in Japan is only the story of ‘relative poverty,’ or perhaps the growth or shrinkage of economic disparities.

Nevertheless, it is clear that some conservative commentators have indeed spread the myth that real poverty in Japan either doesn’t exist or is limited to those who have brought misfortune upon themselves.

For example, Toshihiro Nikai, secretary-general for the Liberal Democratic Party, stated at a 2018 lecture, “Currently, there is no household that has trouble finding food to eat. There is no other such wonderful country as Japan.”

A couple years earlier, Satsuki Katayama, who recently served as minister for overcoming population decline and vitalizing local economy, also appeared to deny the realities of poverty in Japan while commenting on an NHK broadcast that featured a junior high school student living with her mother. Katayama rejected the notion that poverty could force young people to discontinue their education: “Her life seemed to be humble as far as I could see, but she will still be able to buy a used computer if she just saves up on tickets, goods, and lunches. Some people will naturally see it this way. If financial reasons appear to prevent her from continuing her education, she can still find scholarships to support her.”

Beyond conservative lawmakers, other public figures have also played a role in spreading this myth. One notable example was the comments of rakugoka Shuncho Katsura in 2018, when he said, “In Japan, anybody can make a living. And if you cannot work, there is welfare. If you have the time to blame the government for your poverty, then I’d like you to take the time to take the proper steps. The only poverty in this country is absolutely the fault of those who are impoverished.” He later apologized for these comments.

Anecdotal evidence suggests that poverty in Japan may have worsened since the arrival of the Covid pandemic, but the government has yet to release statistical information to measure its effects.

Research assistance for this article was provided by Kentaro Kato

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