That’s not a paradox. Inequality is a completely separate measurement that emerges anywhere there are extremely wealthy people despite the average population doing really well.
A high density of tech billionaires in California doesn’t prevent a regular family in Tennessee from putting food on their table. Poverty rates would.
They do this by a number of mechanisms, including lobbying to reduce or end programs like SNAP, gutting labor protections, and various other political means; and more generally by making money in zero-sum ways (financialization of the economy means that people are getting rich by skimming off money from other people, rather than by creating value themselves).
I put this in the case of 'eh, maybe'. Not a definite yes or no. The particular place where this breaks is asset ownership and other forms of VC fuckery that start raising the costs for everything around the country.