Race jokes are never technically correct. That's why they're called stereotypes. Not everyone in that race does the thing that the joke is saying. That's why they're funny and people who take them too seriously, like you, aren't.
I don't mean wrong in an ethical sense. I mean wrong in factually wrong, so there's really nothing that would make it a joke. Race jokes are funny, and I love me some dark humour, but what the guest says doesn't really seem like it would be a joke ? It isn't funny ?
But then the hippie stereotype is a white person