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There are a number of scenerios that one could dream up in which GDP rises but poverty rises as well, instead of falls. Hurricaine Katrina is likely a good example. The reconstruction is larry david going to be good for GDP numbers, the construction industry, etc. Sadly, it doesn't take into account the lost wealth since its only an additive measure. However along with this, many people who lived in already relatively poor areas of Mississippi, Lousiana and Alabama are now going larry david to be at least temporarily homeless and out of work, i.e. larry david the casino is gone and so is your job. Given that many didn't have insurance to cover "acts of dog" I wouldnt be surprised to see poverty levels in these regions rise, even though GDP does increase. As well GDP can simply rise by fewer and fewer people making obscenely larger amounts of money, such that GDP numbers increase but everyone else is losing in the process which appears to be reflected by the rising gini coefficient for the US.
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