What is Racism?

The United Nations uses the definition of racial discrimination laid out in the International Convention on the Elimination of All Forms of Racial Discrimination, adopted in 1966:

...any distinction, exclusion, restriction or preference based on race, color, descent, or national or ethnic origin which has the purpose or effect of nullifying or impairing the recognition, enjoyment or exercise, on an equal footing, of human rights and fundamental freedoms in the political, economic, social, cultural or any other field of public life.(Part 1 of Article 1 of the U.N. International Convention on the Elimination of All Forms of Racial Discrimination)

I have really been struggling about what can be said and not said about a specific culture or ethnicity. I agree that different groups of people will gravitate to those like themselves whether ethnicity, religion, hobbies, economic status or even health status. The extent that we gravitate to those like ourselves vary in different situations - for reasons of religion we look for others with the same beliefs, for reasons of health we look for support groups. Some of the inclusiveness is a small part of our lives, other factors make it a larger part. For instance if I belong to a specific church that was built by a specific culture the effect of this will be based on whether I do things outside of that church influence.

My problem is what I thing is wrong to say seems to be acceptable to others. My beliefs on what you can and can't say to a person come from the way I was brought up. I was brought up to believe that there are differences among people but it is wrong to catagorize a group based on perceived differences. The culture that I share with my non-church friends seem to agree on what can be said and what is too broad a generalization. We are currently fighting the other extreme of political correctness which I might be guilty of. But in other circles things that I think shouldn't be said seem to be considered fair statements.

For instance I would never label any group as cheap. Even with solid statistics I would label a group as spending less than another group - I can't quantify the term "cheap". Considering how much waste we have in the Western world any other approach to consumption could be considered cheap.

I would also never label another group as smart. Again, test scores and occupations are the result of a whole host of factors that are environmental and economic. If I studied harder in school (and now) I could achieve much more. But, then again, how much achievment is enough?

I am really at the crossroads with this because my friends that go way back have a different idea of what can be said and what would be considered stereotyping and bordering on racism. I'm not sure if I am politically too correct or if my sensitivity to this issue is a good thing.