Same response as to your other question of "why there was no outcry" and the issue you dodged in my reply. You were a white kid in the 70s. So was I.
I didn't see racism or anti-semitism either. I found out decades later that where I lived at that time was one of the most segregarted cities (Minneapolis) in the country at that time. Gosh, no wonder I didn't see racism or anti-semitism. We were all white protestants.
I knew in my Minneapolis neighborhood where the two black families lived and the one Jewish family, because I delivered papers and met every single family trying to sell subscriptions. Not once in the six years I lived there did I see any of those families kids (and they all had them) at the park two doors down from my home (two/three streets from theirs). Yeah, I saw no racism.
When I moved to Houston, Texas in 1979, all I fucking heard constantly for the first several months I lived there (and off and on until I left for good in the 90s) was how the South actually didn't lose the war, would rise again, etc. And the racism in South East Texas still makes me sick to my stomach. The casual racism, the endemic racism, the overt racism - every fucking day. Pisses me off (obviously) 40+ years later.
The south is super fucking racist. The Confederate Battle flag is s an overt symbol of that racism. Always was, always will be.
If a kid doesn't understand the direct connection between that flag and racism because he's a kid, that doesn't make it any less racist. It's just because he's still a kid.