The Japanese economy is healthy relative to the rest of the world but it's true that Japanese people are too poor and are not getting better fast enough. But this is mostly because "sacrificing and hardworking" was a dumb thing to set up the country to be. They were worried about people having too much free time so set up a super unproductive structure where every man was in the office 12 hours a day, gets micromanaged, and barely does any real work.

Of course, that's an old picture of the country; ~10 years ago when everyone though of Tokyo as a place where kids hung out on the street in cool fashion all day, that's because those kids were unemployed because they weren't willing to become salarymen. And there has been real reform towards productivity since then.

Also, Japan’s Phillips Curve looks like Japan.

http://www.econ.yale.edu/smith/econ116a/japan.pdf