According to history it was a term first used by rich white plantation owners and government heads to discourage lower class white citizens in the 1800's, they were called this because all they could buy was flour and water and made cheap bread with the ingredients forming a large cracker. Slaves on the plantations were encouraged by slaver drivers to call these lower class citizens who stole crops.
Today it is used mostly by black individuals to make fun of white individuals. Though dosent have as much impact as its cousin word "Nigger" (cuz white people weren't mass enslaved in America)
Black Guy: What up cracker!
White Guy: Hehehe....Hey man
White Guy: (whispers) stupid nigger
Black Guy: What was that bitch?!
White Guy: *runs away*
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