Water is wet.
No, really, of COURSE that term is racist. It's also a really, really american concept.
Discussing how it is racist however seems moot to me, because, like I said, water is wet, we do not have to have a discussion about that, it's just a fact.
More interesting would be a discussion about why this term and concept was conceived in the first place.
I personally think it's just a concept to use if you want to victimize yourself. That's fascism 101, you need to be a victim and sincerely defending yourself against an enemy that is subpar compared to you. How can you be a victim of a group of people that you yourself are so superior to? Through sheer numbers. And that's all there is to this.