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My comments on this will be equally or more impressionistic than Marty's.
To the casual observer (especially the first-time visitor from the US) there are no obvious signs that Japan suffered through a decade (or more) of stagnation (and now may be headed toward worse). IMO this has something to do with cultural tendencies which if not uniquely Japanese are distinctively so (yes, I know about the pitfalls of cultural essentialism). There is a strong emphasis on public hygiene and sartorial splendor (especially WRT young women) so the slovenly tourist from Peoria cannot help but be blown away by what seems to be a hyper-affluent society. (Unless said Peorian is non-plussed by un-American modest houses and tiny vehicles.)
These perceptions will wane once one gets away from the beaten track of the Tokyo-Kansai corridor and heads for towns and villages of the provinces. In many a town and village center you will see evidence of economic disinvestment (i.e. physical decay) which if not on a par with Flint is on a par, with, say, typical struggling Main Street U.S.A. How much this has to do with long-term demographic trends, how much it has to do with socio-spatial restructuring, and how much it has to do with the 1990's slump is not known to me, but at least the latter two "factors" are deeply interconnected. For example, during the 1990's, struggling small-to-medium size industry in the sticks, accustomed to being sub-contractors to the Tokyo-Kansai conglomerates, either went under altogether (more often) or relocated to China (less so). Backwoods localities got by on public works pork from the LDP and the Ministry of Construction. Then the Koizumi "neo-liberal" (of a sort) faction of the LDP became influential (if not hegemonic) and this type of patronage was significantly curtailed.
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