You first have to understand that racism isn't just plain extermination and hate. Racism starts with smaller things. It's in everyday things. Small talk between neighbours. Prejudices and stereotypes radicated in culture and history. Envy. Fear that there aren't enough resources for everyone. Fear that someone could take away your rightful place in the world. Fear that your privileges would be taken away in a matter of seconds if you let your guard down. You're so acclimated to be the master of your world that the fact that someone else could be master of his own fate and have your identical possibilities put you in a state of anxiety.

In your world there are decades of eugenics and scientific racism to support the separation of ethnic groups. You studied it at school. Frenology clearly shows with facts, logic and science that a person with a certain frontal lobe is certainly more inclined to commit crimes.

Then the propaganda strike. You know, words spread around. Words like that the jews are 7% of the population but they commit 30% of the crimes. Is anybody gonna refute that fact? Well, yes, a simple research could prove that wrong, but you read it on the newspaper so it must be true. Why check it? Are you a dirty communist? Are you a jew lover? If you spread falsehoods long enough most of the people will believe that it's true (And it's not a myth, you can experience this everyday in modern days). They will create a common denominator, a social stigma against whoever express publicly his doubts. No one has google to easily debunk it in the 30s. If you deny the news, you're being brainwashed by subversive, communist propaganda. Or maybe you're an anti social and an enemy of the state.

You never know who you can trust and who don't. You just keep your head down and keep doing your job.

Then, day by day, you read outrageous things on the newspaper and you hear horrible things on the radio, and in the cinemas the newsreel before the movie shows astonishing things. Things such as that there's widespread criminality in the jewish communities. That jews deal drugs in their neighbourhoods, killing or misleading from the right path every year thousands of valod young aryans. That jews are lazy and don't want to work, living on the back of the national welfare, while you, young and white man, have to work your days out for a loaf of bread. That jews have a different culture and scale of valors thn the mighty german culture. That jews are making far more chikdren than the Germans, and have a secret plan to subjugate the aryans with their sheer numbers. That jews have a plan to take control over your small town. That jews betrayed the whole nation with a communist backstabbing during ww1, forcing a glorious and victorious nation to surrender. That jews control the market and caused the proce of german bread to increase because they're envy of german grow. That jews control both the capitalist system and the marxist movements, in a complicated but secret plan to take over the world, and only the good nazi party discovered that and it's here to protect you from this bad ifluence.

Racism is in your daily life. Dehumanization of the minorities is in your daily life. It's thw first step needed to liquidate undesires people. "They shouldn't have done that, so they wouldn't be in cages". "They shouldn't have lived like that, they deserve that punishment". "It's their own fault". "I was born in a happy aryan neighbourhood and I'm proud of it. Good that the state took away those jews from here, they were ruining the neighbourhood. Where are they taking them? Oh, I don't care as long as it's far enlugh from here".