Caucasian has never been acceptable.
There is a funny gag that seems racist in Terry Southern’s script (maybe also in the original book) for The Loved One.
Made just after Dr. Strangelove, it concerns a young Englishman who comes to America. Eventually he finds himself working with the funeral industry, first for a burial for his uncle.
He’s asked if the deceased was Caucasian and he says no. White. And the term DOES mean different things to the rest of the world.
Read up on it on wikipedia. Non racist entry. The whole Caucasian thing WAS a racist designation to begin with.
http://en.wikipedia.org/wiki/Caucasian_race
The term “Caucasian” originated as one of the racial categories developed in the 19th century by people studying craniology. It was derived from the region of the Caucasus mountains[6]. The 18th century German philosopher Christoph Meiners first named the concept of the Caucasian race[7], but the term was more widely popularized in the 19th c. under the name “Varietas Caucasia” by the German scientist and naturalist, Johann Friedrich Blumenbach (1752-1840) who “borrowed the name Caucasian” from Meiners.[8] Blumenbach based the classification of the Caucasian race primarily on skull features, which Blumenbach claimed were optimized by the Caucasian peoples,[9] particularly a single skull from the Caucasia which resembled German skulls.[10] It was from this similarity that he conjectured Europeans having arisen in the Caucasia.[10] Blumenbach wrote about the “primeval”[7] Caucasian race which he believed was “the oldest race of man”[7] and the “first variety of humankind”[7].
With the turn away from racial theory in the late 20th century, the term “Caucasian” as a racial classification fell into disuse in Europe. In Germany and Russia, the term “Europid” or “Europoid” is used. Consequently, in the United Kingdom, the term “Caucasian” is more likely than in the United States to describe people from the Caucasus, although it may still be used as a racial classification.
Only retarded Americans still use the term "caucasian." Only folks from Yerevan and Tblisi are caucasian.
Of course to even have race designations is racist unless you use it for preferential treatment.