American Origin

What is the origin of the American term 'Hispanic'?

Did Spanish settlers in Mexico and the States intermarry with local people and are Hispanics their descendants? I'm confused because Americans seem to regard Hispanics as a separate race and when I see them on American television, some look like white people and some look like native Americans.

Hispanic is an ethnicity, not a race. That's why there's Hispanics that look like White Europeans, while others may look either African or Native American looking. It refers to the spanish speaking peoples of Spain, the Caribbean, Central and South America.