I think it's probably some of both. Certainly a lot of inequality is economic in a way that is independent of race. However, I think that there's also a degree to which people in power are naturally going to favor people like them. I don't think it's even necessarily a matter of discrimination. If I'm interviewing, for example, it's going to naturally be easier for me to recognize indicators of merit associated with my own culture. Therefore, I think that DEI is an important part of making our society more of a meritocracy.

In terms of your second paragraph. I think that the problem is that those regulations are often put in place to protect people in a way that doesn't depend on company size. For example, in many cases workers usually don't need any less protection just because the company that they are working for is small.

> However, I think that there's also a degree to which people in power are naturally going to favor people like them. I don't think it's even necessarily a matter of discrimination. If I'm interviewing, for example, it's going to naturally be easier for me to recognize indicators of merit associated with my own culture.

For this to be a major factor you'd need some explanation for the over-representation of Asian Americans in many lucrative fields in the US. Shouldn't they otherwise be seeing a significant negative impact from this?

> I think that the problem is that those regulations are often put in place to protect people in a way that doesn't depend on company size. For example, in many cases workers usually don't need any less protection just because the company that they are working for is small.

The issue is that the rules are often created without respect to how they impact smaller entities, or are purposely designed to impair them at the behest of larger ones.

A lot of regulatory overhead is reporting requirements. Reports from small entities are typically going into a database never to be read by anyone ever. But you still have to spend time filing them, and then they'll stick you for filing fees even though you're just uploading 2kB of text to a website, and the filing fees are the same whether you're a sole proprietorship or Walmart.

The rules are often completely nuts, e.g. you can be ineligible to collect unemployment if you were self-employed but you're still legally required to pay for the unemployment insurance coverage. Some states have paid leave policies that assume every employer is a bureaucracy large enough to absorb the cost of hiring a temporary employee while concurrently paying the one on leave.

There are also tons of rules that are simple enough to comply with if you know about them, but with no reason to expect them to exist and a book of regulations which is thousands of pages long and full of rules that don't apply to you, the first time you find out can be when you get a fine or somebody files a lawsuit. In many cases these will be some kind of reporting or registration requirement that exists for no good reason, but exists nevertheless, e.g. did you remember to register a DMCA agent, or list your physical mailing address when you sent that email? These things aren't actually protecting anybody, they're just a trap for the unwary.