But there are already signs of the rich becoming richer and the poor becoming poorer, which some critics blame on Prime Minister Junichiro Koizumi's rush to privatize, cut social services and reform the economy.
The number of Japanese households with no savings at all hit a record 23.8 percent last year, way up from 7.9 percent in 1995, even though household assets rose steadily, according to a survey by a research council affiliated with the Bank of Japan.
A survey by the Nihon Keizai Shimbun earlier this year found that 54 percent of Japanese believe they belong to the middle-class, down from 75 percent in 1987 when Japan was in the bubble.
In contrast, the ratio of people who believe they are in the lower class rose to 37 percent from 20 percent, the leading business daily said.
"What is unique to Japan is those people called `low society' are quite satisfied with their lives," says Ryuichiro Matsubara, an economics professor at the University of Tokyo.
"This is a very rare phenomenon among advanced countries. Here in Japan you don't see riots like those seen recently in France," where street protests forced the government to drop plans to ease job protection in hopes of reducing national unemployment.
"I think this is because Japan has developed a very peculiar consumption society since the late 1970s," he says, noting a wide variety of goods are sold at low prices thanks to cheap labor in China and other developing nations.
"You can enjoy life with freedom of choices guaranteed. Japan has established a social infrastructure that allows you to live a somewhat decent life unless you marry [and support a family]," he says.
Psychiatrist Hideki Wada says, "They don't take the matter seriously, believing they would not be homeless in today's Japan. On the other hand, they just have given up on going higher."
The lifestyle raises the eyebrows of older generations.
"You should strive to go higher as long as your life goes on," says Kenji Takizawa, a 52-year-old salesman for a food company.
"I'm also a father of two college students and want to earn even a single yen more," he says.
Still, he admits that the slacker life offers a certain appeal.
"I envy such people in a sense but I believe you shouldn't shun the fun and duty [of having a family]," he says.
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