Japan is one of the world’s largest economies, and has accumulated a high level of public debt since the end of World War II. This article explores why Japan has so much debt, with factors such as government spending, banking crisis, aging population, low interest rates and quantitative easing contributing to increased borrowing costs and higher levels of public debt. This high level of indebtedness can have negative impacts on economic growth if not managed properly through fiscal consolidation measures such as cutting spending or raising taxes.