A competitive market is efficient in consumption and production. It produces the goods and services that consumers demand, and no more, at the lowest possible cost. Nonetheless, the forces of supply and demand do not necessarily produce an equitable allocation of goods and services — an equal distribution of the economy’s output. These distributional disparities arise primarily because individual abilities, skills, and effort levels can differ widely across the population.

Critical race theory offers an alternative explanation for the unequal distribution of income: systemic discrimination and the exercise of “white privilege.” This is the rationale behind promoting “social equity” rather than equal opportunity.