Carving a watermelon is not inherently racist; the forced association of watermelon with a black person is racist. Per your second question: Potentially, yes. In this particular instance, it’s racist because she carved three pumpkins ‘of’ white people (with ‘of’ in quotes because they’re hardly depictions of anything–she just named the carvings) while carving one watermelon ‘of’ a black person. This is racist because–see above–the long history of associating black people with watermelon in order to denigrate them. It’s not canceled culture, it’s called a standard of professionalism. Police should be held to a higher standard. If there’s any evidence of racism or prejudice in a cop’s personal life it will bleed into their work.
The public positions have much stricter confines and a much stricter set of rules, for example, as a private business you can within the law, scream to the world with banners, flags, etc. who you support as a candidate in any election at damn near any time. Want to hang a Biden/harris flag? go ahead. Want to run a MAGA banner across the entrance? You can. Want to go and make political affiliations and apparel wearable? you can do that, as long as it’s within the confines of the law.
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