I think you're both right. IMO, Japan has a very high standard of living, but they could also be better off today if they'd been looser with fiscal spending (and spent that fresh-printed money wisely). For example, one of their major issues is an aging population; they could have directed spending towards subsidizing childcare, fertility treatment, parental leave subsidies, or even offering a salary to stay-at-home parents, to compensate and incentivize that valuable work. (They do have some of these policies, but their low inflation suggests they had room to do much more!)