Here's an op-ed in the NYT that takes a counter view: "The Myth of Japan's Failure" - http://www.nytimes.com/2012/01/08/op...c-success.html

I don't really know enough to critique the argument, but the premise is basically that Japan has been doing a lot better than the US in providing a high quality of life to its residents despite low economic growth. Some facts mentioned:

• Life expectancy is 5 years greater than US and has increased by 4 years from 1989 to 2009.
• Unemployment at 4.2% is half of the US
• Japan maintains a current account surplus, and particularly is much more balanced in trade with China
• Numerous subjective observations, like newness of major Japanese airports vs their outdated American equivalents.
• The difference in the official per-capita GDP growth figures between the US and Japan can be attributed to measurement error.