Japan was previously lauded as a country that enjoyed low crime rates, which scholars had associated with cultural characteristics unique to Japanese society. The author points out, however, that when registered crime began growing steeply in Western countries, Japan had very low crime rates as well as very low employment rates, which was contrary to the employment situation in Western countries. The author argues that Japan’s low crime rate, therefore, could be a function of economic conditions rather than cultural characteristics alone. In 1990, Japan’s “economic bubble” burst, thrusting the country into its highest unemployment rates since the 1930s. In addition to climbing unemployment rates, Japan has also suffered rising crime rates during the past 10 years that have fed what some term a “moral panic” in Japan. An analysis of crime rates in Japan is presented along with other indicators of rising crime, such as the formation of neighborhood watch groups, increasing sales for personal and home security items, and opinion surveys about fear of crime and victimization. The author agrees that in the time period before the economic crisis, the low crime rate in Japan was at least partly driven by cultural factors. However, the cultural characteristics that contributed to low crime rates during economically prosperous times have not had the same criminal deterrent effect during times of economic decline. The result has been that Japanese criminal justice and social policy has adopted ever-more retributive practices. Figures, footnotes, references