Some history may help.
Political correctness was originally a joke among leftists. It had to do with adhering too rigidly to a political stance:
http://www.ram-wan.net/restrepo/hall/some%20politically%20incorrect%20pathways.pdf
Eventually it became a political effort to avoid disparaging groups of people. There are small modifications to speech that can be made to induce an inclusive society, but some people will loudly protest moderation that doesn't hurt them in any way with a slippery slope argument, that social moderation of any speech is forced moderation of all speech. There are people who will refuse to change to "people" or "humans" instead of "mankind" or other pointlessly gendered speech, as if it physically pains them to just use a generalized term for a general category. For the utilitarians, useful political correctness is the realization that sensitive speech increases the happiness of an affected group for no cost other than a moment's thought to an individual.
Ironically,
hating political correctness has become a rigid orthodoxy itself. The logical extreme of the counter movement's argument is that people can
and should say any old thing that comes into their heads, and any social consequences for that are always wrong. (C.f. https://en.wikipedia.org/wiki/Paradox_of_tolerance). You can justify all sorts of punching down with this attitude. Since I'm sure most of the smart people here would agree that we don't want to go to that logical extreme, the truth must lie somewhere in the middle that some measure of political correctness is in fact necessary for an equal and just society.
"Punching down" is also the test for humor. But good humor simply doesn't generalize a group or rely on stereotyping. This has never been the case. Comedians who make jokes like that get forgotten or they discomfort their readers later. Comedians who speak truth to power, talk about *specific* funny things, and dig deep into themselves and their own culture are the ones who survive and thrive in every era. (Also, obviously fake violence or fake injury is always funny, see for reference Looney Tunes, but I digress.)
An excellent case study is George Carlin. If you read his actual words he actually often
is politically correct, despite his dislike of political correctness. He simply doesn't engage in the type of humor that requires a PC check even when he's using "offensive" speech, because he's not targeting disadvantaged groups. Carlin understood nuance and paradox and thought very deeply about his words and language itself. Here's a full quote from him about PC:
Political correctness is America's newest form of intolerance, and it is especially pernicious because it comes disguised as tolerance. It presents itself as fairness, yet attempts to restrict and control people's language with strict codes and rigid rules. I'm not sure that's the way to fight discrimination. I'm not sure silencing people or forcing them to alter their speech is the best method for solving problems that go much deeper than speech.
Carlin is saying here that the type of political correctness that's based on rigid rules of speech doesn't make people want to say the correct thing. Aristotle might disagree and say that virtuous speech can lead to virtuous action, but the point is that Carlin was still arguing that the speech that people want to moderate is a symptom and not the disease itself. This is actually same argument as the seven words bit: That someone came up with some rigid rule for speech in a specific context, but the rules are about style and not substance.
I think one might ask: If you long for hearing someone make a joke based on stereotyping of an outgroup, why is that? What are you getting out of a joke like that? Is it the stereotype itself? Does the joke maker elucidate another culture to you, or do they just press a pleasure button in your brain? Because ultimately that's the difference: Good humor enlightens.
Good humor is also an equalizing force. Two fools can make fun of each other. And a king can keep a fool. But it's not funny for the king to make fun of the fool. Knowing whether you're the king or fool and acting accordingly is what political correctness is supposed to be.
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There's a bunch of stereotyping going on in this thread, too, and I'd argue that this is all part of the same problem. Some person complained about someone wearing a sombrero, which OP finds ridiculous; therefore
any complaints about cultural appropriation must be wrong (EDIT: I am not saying that user 37518 thinks this -- I don't know what they think. I am just using this as an example). That there's some "woke nation" with some culturally agreed-upon rules of what's allowed (again, JR, I'm not saying you necessarily think that, but your post gives that impression). Or even that the same people who think that the U.S. should not default to an assumption of WASP culture are the same people talking about cultural appropriation. Many ideas come from people with nuanced views and are picked up an "enforced" as orthodoxy by people without nuance. And then they are opposed without nuance by people with the opposite orthodoxy.
Edited my last paragraph for tone.