It certainly has downstream chilling effects. The lingo around how to describe minority groups is fraught with landmines that often lead to avoiding discussion in general. Growing up in the 90's I remember trying to learn the correct terms for Native Americans, people of color, etc, and for many years I believed mistakenly that some terms were taboo when they weren't (I thought it was rude to refer to someone as "Mexican", for example) and to this day I am still hesitant on some things; is using "Black" as a caucasian offensive in some contexts, wait what's the correct term for the indigenous peoples of the arctic North America, etc.

So when time comes that we might discuss a subject that touches on these groups, I generally tend to avoid it. I think I know the right term, but on the 5% chance I say something offensive then it's a huge negative outcome for me. No I'm not going to accidentally say the n-word, but sometimes it's easier to avoid conversation on the topic if I'm in a context where I may stick my foot in my mouth.