My folks were kinda... weird on racism. My grandfather hated the Japanese and made no secret of it, and my parents always explained it away as ok behavior because he fought in WWII and lost friends to the Japanese. My folks lived in New Mexico, just a couple hours from the Mexican border, but they had big issues with people who spoke Spanish better than English. I heard the phrase "This is AMERICA. We speak ENGLISH here." more than once. They kind of expected that if you moved to America, you adopted ALL the American ways, as though you could not move to a new place and keep your own familial traditions and cultures. It was the opposite of what my schoolteachers taught me about America being a melting pot and having so many different cultures being what made it special.
I think the worst thing that happened regarding racism though, was one day my stepmom dyed my hair dark brown because, as she said, "It would be a feather in those Mexicans' hats to have a blonde girl like you!"
I always just figured that my parents couldn't be wrong about such things, even though I had Hispanic friends and liked them. Then when I went to college and met other people and learned more things and it was just appalling to look back at where I'd come from.
I love my parents. But I could never live with them or near them again. We just have too widely different views of too many things for it to work.