I’m proud of being (ethnically) Jewish, and I think Mexicans and blacks and whatnot are proud of who they are. There’s nothing wrong with being “a Jew”, and I don’t like people implying that it’s an insult. The same goes for the rest of them; Mexican isn’t a bad word, nor is black or Asian or whatever. I consciously use those terms to try to help students get past the idea that they are negative, that they are insults.
Those who think they are bad words, insults, examples of racism – the problem is on their end and how they perceive those terms.