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http://www.adversity.net/special/niggardly.htm
Washington, DC's black Mayor, Anthony Williams, gladly accepted the resignation of his white staff member, David Howard, because Mr. Howard uttered the word 'niggardly' in a private staff meeting.
Webster's Tenth Edition defines the word 'niggardly' to "grudgingly mean about spending or granting". The Barnhard Dictionary of Etymology traces the origins of 'niggardly' to the 1300's, and to the words 'nig' and 'ignon', meaning "miser" in Middle English. No where in any of these references is any mention of racial connotations associated with the word 'niggardly'.
In other words, it's a perfectly good and useful word. But there is the unfortunate coincidence that it starts with the same four letters as the word "ni**er". The news media are so loathe to use the "N" word, that they've been substituting the phrase "racial slur", as in "...they mistook the word 'niggardly' for a racial slur..."
Washington, DC's population is 60% black, and it's citizens have been very critical of Mayor Williams for "not being black enough" -- especially because he hired several well-qualified whites to help him run this troubled city.
Racial intolerance, ignorance, and misplaced political correctness have cost a white mayoral aide his job in Washington, DC. And, as many of the other stories on Adversity.Net clearly illustrate, the "niggardly" controversy is only the tip of the "intolerance iceberg".