The difference between the Third Reich and the Confederates is that the Confederates were doing something that was perfectly acceptable at the time. The National Socialists were committing genocide, and the rest of the world reviled them for it. Contrast with the Confederates, where the US had to issue the Emancipation Proclamation to keep Great Britain from lending support to the Confederates. Before that, it was a simply matter of keeping the US in one piece.
Tl;dr: The Nazi flag is an attack on minorities, the Confederate flag is a symbol of a breakaway faction.
Dont get me wrong the nazis were rasist but there is one thing that makes it to where you need context for the flag...The swastika aka the symbol on the middle of the flag. The nazis didn't actually make it, it's actual meaning is good fortune and is suppose to represent the suns illusion of moving across the sky. It's also a sacred symbol in Hinduism, Buddhism, Jainism, and Odinism. But the nazis have made it a symbol of hate...So in conclusion the flag is only rasist when associated with the nazis.
The flag of the Greater German Reich represents a nation that harshly oppressed anyone not considered Aryan or mentally stable enough to deserve life, all those soldiers who died had every opportunity to rebel against the evil government and fight for democracy, yet few did, also look at all the modern groups who use the flag of Nazi Germany, enough said.
The Third Reich flag, like the confederate flag is a symbol for fallen soldiers who died fighting in world war II for the very rights they held so dear. Even though horrid things were done under these flags, it does not represent their meaning today at all. So both t
The movement that the flag represents, could be considered racist, but the movement itself wasn't completely centered around racism. The flag is not racist, its just a part of history. Getting offended over the flag is the equivalent of informing its movement that it did affect, and hurt us. Acknowledging that means that the Third Reich has won.
It is racist if one thinks that flags themselves represent the ideas behind the people who made them, but people who view flags, just as flags, its not racist.
Furthermore, there is a logical problem with taking flags as always representing the ideology of the state that they represent. For example, say that a country had a racist political ideology for a certain amount of time, but it then became a non-racist, humanitarian country, helping billions out of poverty, all the time its flag stays the same. Thus, when one sees the flag, which part of the country will they think about? The racist or humanitarian part? It depends upon the individual, and flags do not have a absolute meanings behind them. But that argument does not really work for the third Reich, since its ideology was always racist, but I put it into this just to highlight a point about flag meaning being relative from a timeline perspective.
But, while I do not think that the flag is racist, its just a set of colors arranged in some specific design, many people might take it to be racist, so I would not go round waving the flag in public.