In the United States, the past thirty years have brought with them a substantial rise in income and wealth inequality rates. Inequality in the U.S. has risen to levels not seen for nearly a century and shows no signs of decreasing in the near future. Conversely, Canada has experienced lower levels of inequality during this same period despite many similarities and ties to the U.S. Therefore, the purpose of this paper will be to examine the extent to which these two countries differ in this area and identify some of the more salient factors that have contributed to this divergence, including tax policies, unionization rates, and financial industry regulation, as well as the deeper, more fundamental elements of each nation's identity.