I don't think most Americans realize that if you're Hispanic/Latino with nothing but ancestry from Spain, Portugal, or the Middle East, that you're no more or less White than a blonde-haired blue-eyed person. The fact that you speak Spanish and/or come from Spanish-speaking countries doesn't change that.
Even the US census says this, yet still so many Americans think that Latino is a concrete identity, when in reality there are White Latinos, Black Latinos, Native American Latinos. It's not that hard to observe and understand.
So what? Is it solely for politicization? Cause American News Outlets often discuss Latino as a race as well.
Spaniard - Person was born to Spanish parents in Spain, and speaks Spanish as a first language. Is considered a race/ethnicity, though there is some debate about that, particularly the light-skinned Spaniards.
Hispanic - A person whose ancestors were a mixture of Spanish and the native American tribes of Central/South America. Are considered a result of Spanish colonization in the past. A few exceptions might include people of Spanish descent whose bloodlines never inter-mixed with the natives, but are not pure Spanish anymore; and certain unnamed Germans who immigrated to Latin America after WWII.
Latino - A person who is part of the Hispanic ethnic group, and has ancestors from Latin America. May or may not speak Spanish, depending on whether they actually live in Latin America, or in North America, and whether they learned Spanish as part of their community or not. Are not always Mexican, and they will let you know it.
Mexican - Person was born in Mexico to Mexican parents. Can also be someone who immigrated to Mexico and became a Mexican citizen.
Latin America - A section of the world that includes Spanish-speaking countries such as Argentina, Bolivia, Brazil, Chile, Columbia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Uruguay, and Venezuela.
Spaniards and Hispanics are not the same people, as I showed up above.
Today's Spaniards are an odd lot. Half of them are light-skinned, light-eyed, and even have blonds and redheads. The southern ones are darker and have a more Mediterranean look to them, due to inter-mixing with Moors that lived there centuries ago. There has also been inter-breeding between the Spaniards and the French, the Italians, and even with Dutch and English. It was particularly telling with some of the royalty that ruled Spain in the past, if you take a close look at them.
Today's Spaniards have an interesting relationship with Latin Americans. They see themselves as superior to Hispanics, because they never inter-mixed with the native American tribes living in Latin America, and stayed in their "mother country." A close comparison is like looking at an Old Money family that has relatives that are lower class and not as refined, and they snicker at them behind their backs.
You can see it in their very language, because in Spain, their speech is much more formal, and I'm told the waiters in Spanish restaurants will not even respond to you if you speak to them using Latin American Spanish. They prefer a more old-fashioned, formal speech that isn't used as often in the Spanish language. I learned this when I was first learning Spanish in Jr. High. I also talked with two different Spanish teachers, one of which, did her Immersion in Spain.
Hispanic is a very inclusive term that can encompass race and ethnicity. Latino however is misused a lot. It means Latin American man, and Latina is a Latin American woman.
Good point ... it is usually the native American racial heritage that has been the key to discrimination and exploitation - not necessarily speaking the language of your oppressor.