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I have been told by many Native Americans that the terms Indian (which generally means from India) and Native are both not acceptable terms. I was told that Native American is okay, though a little bit odd sounding it is acceptable. As a whole that is the term you would use, but calling them by the name of their tribe or group is more acceptable and generally encouraged. I live in Alaska, so we have plenty of Native Americans here. People call them Natives, but only in bad situations (which goes to show that the term is negative). Example: "The natives are always drunk and beating on their wives." as opposed to "The Yupik are starting a whale hunt this week." You catch the drift?
I know the term Native is acceptable when used as "native country" "native tongue", but over time the word (atleast here in Alaska) has been given only negative connotations when speaking about groups or individuals.