This article explores the prevalence of poverty in Japan, its causes, and its impact on the economy. Poverty is defined as an income level below half of median household income after taxes, which was ¥3.11 million ($28,000) in 2018. According to the Ministry of Health Labour and Welfare (MHLW), 8.7% of Japanese people lived below the poverty line in 2018 – a total of 9.9 million people. Causes include an aging population, widening income gap, and rising costs such as rent and food prices. The negative impact on the economy includes reduced consumer spending power, increased public spending on welfare programs, and potential for crime or other illegal activities due to lack of basic necessities such as food and housing. The Japanese government has implemented various initiatives to combat poverty while private companies have also been working hard to provide flexible working hours and assistance with childcare costs. Challenges faced by those living in poverty include difficulty affording basic necessities, lack of access to healthcare, difficulty