Here's some more background, and my own editorial analysis on the subject, first penned by me as a columnist in the Tamarac Forum (Forum Publishing Group) several years ago, relevant now, again.

The term "Schwartze"(or "schwarz")--phonetically pronounced as "shvartza" as it has crept into usage in the English language by some American born Jews of European descent--is the Yiddish word for the color black. When spoken in the midst of an otherwise all English language conversation among American born Jews, the word "shvartza" is used by many to refer to a person who is African American, usually in a judgemental sense.

For example, it might be uttered in reference to an African American passerby, worker, or even a public figure. The use of the word by this Jewish group is protected within the group itself, and never uttered to blacks themselves, nor to non Jews. That is to say, it might be used openly among certain likeminded Jewish peers in a homogeneous setting, like a clubhouse within a condominium community. On the other hand, if spoken in a public restaurant, it is more likely to be whispered, in secret---an apparent acknowledgment that the "S" word, "shvartza", as used will be perceived by the public as a disparaging term.

At best, the usage of this term in the 21st Century among some English only speaking Jews to refer to blacks is grossly politically incorrect. At worst, its use would seem to be either flagrantly or subtlely racist because of its derogatory connotation-- an "S" word that may be akin to the "N"word most recently used accidentally on purpose by non black racists in the entertainment field, and prevalent in the current news cycle.

Otherwise, why suddenly in the middle of a strictly English conversation would an American born Jew consistently switch to Yiddish to sort out only one word(shvartza), when they barely ever speak Yiddish in the first place? Could it be a discomfort with the currently politically correct terms "black", and/or "African American", and a reactionary refusal to give in and even use these terms currently acceptable to blacks themselves? Maybe. And why would regular users of the "S" word gripe(as overheard) that they are confused as to how to refer to blacks properly, citing that the label keeps changing-- from colored to Negro to black to African American?

In doing so, those individuals reveal three things about themselves: Lack of awareness that blacks and other races/religious groups don't always choose all of the labels ever assigned to them, especially the derogatory terms; a lack of understanding that when you accept some person or group you somehow learn how to refer to them properly and respectfully, including a respect for how they wish to labeled; and-- most significantly-- it reveals that there probably has been little or no meaningful interactive experience with at least one African American child or adult at any point.

But those using the S word at all are probably in the minority of all Jews, although significant in numbers. Several years ago I moderated a discussion on this very subject, held in the clubhouse at  Kings Point in Tamarac, a retirement community in Florida. The setting was the KP Currents Events Group, which meets weekly. Its approximately 60 members are highly sophisticated senior citizens, the intelligentsia of the community, keenly aware of local, national, and world news events and politics. They are primarily Jewish, and proud and honored to be so, as is this writer. More than half of the discussants publicly described the use of the "S" word to refer to blacks as either racist, inappropriate, shortsighted, politically incorrect, disgusting, uncomplimentary, harmful, unintelligent, unsophisticated, and the like. Other members affirmed this view less publicly, in clusters outside of the clubhouse after the session ended. And they deemed as empty and shallow the argument by some members that blacks use the "N" word freely among themselves, so why can't they use their own version of it.?

Others were silent on the issue. But other respected members of the Current Events Group, almost one third approximately, asserted that when spoken, "shvartza" isn't used negatively or judgementally by some, including usage by staunch defenders of human rights for all people. Rather, they say it has its roots in traditional use by primarily Yiddish speaking parents and/or grandparents, and it's use is second nature within these strong family ties.
Yet,  listen to this comment from one member of the community, who says that she has engaged in similar discussions on this issue : "I had been saying something I don't really mean, for years, out of habit. It hadn't occurred to me before , but I realized that it sounds racist to use the word, and that it's unnecessary. Sometimes tradition teaches us to hate and we are not aware of it.."
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There seem to be two sides to this, since there are explanations and rationalizations from some, and denouncements from others.  But some things seem clear to me as a proud Jew living among Jews. People I know for sure to be prejudiced frequently use the "S" word. And those that aren't, never use it, and strongly condemn it. Why perpetuate the use of a term that is almost always used in a derogatory sense? It serves no useful purpose in the English language and may be interpreted by a sophisticated listener as a code word for the "N" word, even when unintended by the speaker. And it's not very smart to assume that your listener shares your views on everything you say, so be careful what you utter if you're not open to debate.

It's ironic that one group with a long history as victims of discrimination, hate, and murder, would discriminate against another such group, if only in a subtle way. Doesn't even the slightest rebuke of any religious or racial group contribute to the continued struggles of that group to be accepted as equals into society?