Japan's demographic shift from an average age of 21 in 1950 to around 48 today significantly impacts public pension reliance, with 33% of government spending allocated to Social Security programs. This is markedly higher than the 20% spent on Social Security in the U.S. As Japan's population continues to age, the government faces pressure to service an increasing number of older citizens while managing a debt level surpassing that of any other industrialized nation. To cope with this debt, Japan has maintained low interest rates, which inadvertently fuels inflation. The need to address inflation through interest rate hikes poses challenges, as seen in responses by central banks globally. Japan's situation illustrates the difficult balance nations with high federal debt must strike, as they confront rising costs through inflation, economic contraction, or increased taxes. Consequently, Japan is currently experiencing the ramifications of high debt levels in the form of inflation.