Racism being bad doesn't mean that expressing racist ideas isn't free speech.
There are expressions of racism that aren't free speech: silently beating up a neighbor because of what race he is would be one such thing. There are expressions of free speech that can be debated about whether they constitute racism; expressing a critical view of affirmative action policies is one such thing (which some will consider racist to even bring up, while others may find it to be an area of legitimate philosophical disagreement). But some things fall in both the category of "racism" and the category of "free speech".
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