First off. Economists define &quot;poverty rate&quot; in a slightly cheeky manner:<p>&quot;The poverty rate is the ratio of the number of people who fall below the poverty line and the total population; the poverty line is here taken as half the median household income.&quot;<p>This means that if the middle class is 5% better off after one year and the lower class is only 2% better off, then the poverty rate will go up. Eventhough all households are doing better.<p>The same goes in reverse. If the middle class is 5% worse off after one year and the lower class is only 2% worse off, then the poverty rate will go down. Eventhough everyone is doing worse.<p>This does not mean that the number is meaningless; it just cannot stand on its own.<p>Secondly. Japan is much nicer with those bad things that hurt the lower classes in other societies:<p>Crime is much lower, relatively few people in prisons. And the public school system is of very high standard.