Firstly, I don't agree that racist adults produce racist children. My stepdad was racist and I despise it (though maybe that's because I despise him).
Secondly, on a note relating to what willow was saying about having to stop and think what race people are, I once did something rather humorous in my sociology class in my first year of college. Here's how it goes.
Basically, there was a interviewing process going on at college and it required the opinions of white girls. Anyway, I was the only girl who seemed to be able to volunteer, the others all piped up saying they had things to do and whatever, and so I turned to my muslim friend nassira and said 'why don't you do it?' to which she answered 'because i'm not white'. She's half african/half asian. Now, I felt a bit silly of course for this, but my teacher said it was lovely how it clearly showed that I didn't show any sort of regard to what colour people are, we're all just the same. My friend wasn't offended by it either, but I still feel a bit silly about it today!
If anyones curious, they were just trying to get us to say we were uncomfortable by the full veil being worn to college, to which I saw through right away and said it didn't bother me. Would've hated it if they had used my answers to try and stop people wearing it to college and stuff like that, especially as it was the time of Jack Straw's comments about it, so I kept my answers short and sweet

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I hate racism, but I think the only way for a child THAT age to be racist is if the parents have taught them that, otherwise they're just reacting negatively to it because it is strange and new to them, and they'll soon get used to it.