Last year, according to government statistics, 1.1 million Americans fell below the poverty line. That equals the entire population of a major city like Dallas or Prague.

Since 2000, the ranks of the poor have increased year by year by almost 5.5 million in total. Even optimists see little prospect that the number will shrink soon despite a renewed debate on poverty prompted by searing television images which laid bare a fact of American life rarely exposed to global view.

The president who made the war declaration was Lyndon Johnson. "Unfortunately, many Americans live on the outskirts of hope, some because of their poverty, and some because of their color, and all too many because of both. This administration declares unconditional war on poverty in America."

That was in 1964. Then 19 percent of the U.S. population lived below the official poverty line. That rate declined over the next four years and in 1968, it stood at 12.8 percent.

Since then, it has fluctuated little. Last year, it was at 12.7 percent, proof that poverty is a chronic problem.

The state of poverty in the United States is measured once a year by the Census Bureau, whose statistics-packed 70-plus page report usually provides fodder for academic studies but rarely sparks wide public debate, touches emotional buttons, or features on television. Not so in 2005.

The report coincided with Katrina, a devastating hurricane which killed more than 1,100 in Louisiana and Mississippi. Live television coverage with shocking images of the desperate and the dead in New Orleans showed in brutal close-up what the spreadsheets of the census bureau cannot convey.

SCENES SHOCKED WORLD, SHAMED AMERICANS

The images shocked the world, shamed many Americans and prompted comparisons with conditions in developing countries from Somalia and Angola to Bangladesh. The pictures from New Orleans showed poor black people begging for help. Most of the rescuers, when they finally arrived, were white.

The percentage of black Americans living in poverty is 24.7, almost twice as high as the overall rate for all races.

In predominantly black New Orleans, that disparity translated into those with cars and money, almost all white, fleeing the flood while more than 100,000 car-less blacks were trapped in the flooded city.

Some commentators wondered whether the crisis showed that political segregation, America's version of apartheid which formally ended with the 1964 Civil Rights Act, had merely been replaced by economic segregation. Poor black Americans in one part of a city, affluent whites in the other.

A host of other American cities have such divides, including Newark, Philadelphia, Detroit, Atlanta, Baltimore, St. Louis, Oakland, Miami and the U.S. capital itself. It is a 10-minute drive from the White House to the heart of Anacostia, the city's poorest neighborhood, but they could be in different worlds.

But the black-equals-poor scenes from New Orleans do not portray the full picture. There are three times as many poor whites as blacks in the United States and the poverty rate for whites has risen faster than that for blacks and Hispanics.

Academic experts also say the government's figures minimize the true scale of poverty because they are outdated. The formula for the poverty level was set in 1963 on the assumption that one third of the average family's budget was spent on food.

This is no longer true. Housing has become the largest single expense and tens of thousands of the "working poor," the label for those who work at or near the minimum wage, are forced to sleep in cars, trailers, long-term motels or shelters.

U.S. POVERTY WORST IN INDUSTRIALISED WORLD

"Every August, we Americans tell ourselves a lie," said David Brady, a Duke University professor who studies poverty.

"The poverty rate was designed to undercount because the government wanted to show progress in the war on poverty.

"Taking everything into account, the real rate is around 18 percent, or 48 million people. Poverty in the United States is more widespread, by far, than in any other industrialized country."

Poverty is a universal problem, as is inequality. The world's 500 richest people, according to U.N. statistics, have as much income as the world's poorest 416 million.

The post-hurricane poverty scenes were so remarkable for most of the world because of the perception of the United States as the rich land of unlimited opportunity.

No other country spends so much money -- billions of dollars -- to keep job-hungry foreigners out; no other country has an annual lottery in which millions of people play for 50,000 permanent resident "green cards," no other country has as many legal and illegal immigrants, all drawn by dreams of prosperity.

For many Americans they remain just that: dreams. While there are arguments over how poverty is measured -- conservatives say the census overstates it because it does not take into account food stamps and other subsidies -- there is consensus on one thing.

The minimum wage, which rose by 15 cents to $6.35 an hour on October 1, is not enough to keep you above the poverty line. Yet minimum wage jobs, without health insurance or vacations, are the only jobs available to millions of people with only basic education.

The well-paid unskilled jobs in heavy industry which once lifted working-class Americans into the middle class are largely gone and the decline continues. Since 2001, the United States has lost more than 2.7 million manufacturing jobs. Low-paid clerical work is being outsourced to developing countries.

Another U.S. president, the late Ronald Reagan, had it right when he said, in 1988: "The federal government declared war on poverty, and poverty won."

Copyright © 2005 Reuters Limited

###