One purpose of this paper is to clarify and sharpen categories of social reality that have great emotional and evaluation connotations and consequences. The term "ethnicity" needs clarification. It should refer to the character, style, and way of life taken in by people from their distinct culture. It is not what the naive realism of American culture makes it--an outcome or expression of biological "races." Pseudo ethnicity--that based on descent--puts the U.S. born or reared children of Puerto Rican migrants in an absurd situation. They see themselves not as Americans, but as an ethnic (culturally distinct) group, which they are not. Then, to compound the felony, they are made to believe that they are not an ethnic (culturally distinct) group in Puerto Rico, which they are. Three things can be done about this: (1) go on with the coverup which produces the pseudoethnicity, generated by both social segregation and the confusion of social segregation with cultural distinctiveness; (2) transform pseudoethnics into authentic ethnics; and/or (3) live up to the promise of the melting pot by making equal opportunity available to all. It is concluded that unless the ways in which minorities in American culture are identified change, one must argue for cultural pluralism as an escape from stigma for those whose identity or self-concept is now being negatively affected. (Author/JM)