Washington - THE most widely quoted federal statistic on deprivation and need in modern America is the "poverty rate" -- a measure tracking households with annual incomes below a "poverty threshold" established at the beginning of the Johnson administration's "war on poverty" in the 1960's and adjusted over time for inflation. According to the latest poverty rate estimates -- released by the Census Bureau on Aug. 30 -- the total percentage of Americans living in poverty was higher in 2004 (12.7 percent) than in 1974 (11.2 percent). According to that same report, poverty rates for American families and children were likewise higher last year than three decades earlier.

On its face, this momentous story should have shocked the nation. After all, it suggested (among other alarming things) that Washington's long and expensive campaign to eliminate domestic poverty has been a colossal failure. So why did that poverty rate report end up mostly buried deep inside daily papers?

Maybe because many news editors, like policymakers in Washington, know the dirty little secret about the poverty rate: it just isn't any good. Truth be told, the official poverty rate not only fails to calculate trends in impoverishment with any precision, it even gets the direction wrong.

The profound flaws in our officially calculated poverty rate are revealed by its very intimation that the poverty situation in America was "better" in 1974 than it is today. Those of us of a certain age remember the year 1974 -- in all its recession-plagued, "stagflation"-burdened glory. But even the most basic facts bearing on poverty alleviation confute the proposition that material circumstances in America are harsher for the vulnerable today than three decades ago. Per capita income adjusted for inflation is over 60 percent higher today than in 1974. The unemployment rate is lower, and the percentage of adults with paying jobs is distinctly higher. Thirty years ago, the proportion of adults without a high school diploma was more than twice as high as today (39 percent versus 16 percent). And antipoverty spending is vastly higher today than in 1974, even after inflation adjustments.