It could, although that’s not intuitively obvious.
Kady M.

Just as a follow up to this, I ran across an interesting article today about some research which concluded that rising GDP corresponded to decreasing inequality in Australia from the 1820s to 1870s, while at the same time the rising GDP in the US led to much higher inequality:

The paper’s conclusion is that relative scarcity of labour is a highly significant factor in whether the benefits of an expanding economy are shared across the population. Obviously, not necessarily relevant to today’s problems but I thought it was interesting nonetheless.