I didn't realize how much "Squirrel Jokes" divided people's opinions until I looked through some of the reviews above me today. I quite enjoy this episode, and I think it did a good job teaching the moral (or not even moral, just lesson, awareness spreading even) it sought out to teach.
First off, let me commend this episode for once again not leaning so far into humiliating SpongeBob that I wanted to crawl out of my skin. Yes, the beginning of this episode has plenty of awkward moments, but there's enough humor in the gags of the audience not liking SpongeBob's jokes, as well as SpongeBob's crappy jokes, that I can get through it just fine. See, this is how you do it!
Another thing I like about this episode is Sandy. She's great here. I love that she stands up for herself immediately, so we don't have to drag that part of the plot out very long, and it makes the lesson here better, I think, because SpongeBob consciously chooses to succumb to peer pressure rather than do what he knows is right. I think it's interesting that they keep using Sandy for these racism episodes. I mean of course she's the one they have to use, but like okay we only need like one racism episode lmao, even though I do love "Pressure". Anyway, Sandy continues to be amazing throughout the episode, and the scene where she decides to play into stereotypes is the only one of the episode I feel torn on. I think it's a misstep to have Sandy play into the stereotypes to teach SpongeBob a lesson, rather she should've just done what she did while acting like herself, no need to demean herself to get a point across, but I think it works because SpongeBob knows who Sandy actually is.
Anyway, I think this is a funny episode. Like I said, the beginning of the episode is funny, and there's some funny moments in the middle, but I really find myself enjoying the end, when SpongeBob starts making toned-down jokes about everybody. First off, that's definitely better comedy, period (having jokes about all sorts of groups rather than repeatedly just making fun of one group, especially a group you aren't a part of). And it works in this episode too, because the jokes work in-universe and out of universe, being funny for us the audience, and for the fish in the audience.
I think it's funny that people find SpongeBob to be too much of a jerk in this episode. I agree that he's a jerk, but that's the whole point. I mean, this is exactly how people act in real life. I can already think of a few real-life comedians who have done exactly what SpongeBob has done in this episode, and at least our little square dude changed in the end. Not so much for these other people...
Honestly, in terms of the moral of "Squirrel Jokes", this episode pleasantly surprised me in how well it did the moral here. Is it perfect? Absolutely not, it's simplified extremely and if it were up to me and I was making an episode about racist jokes, I would make certain things a lot more clear to ensure they aren't lost in subtlety, but that's neither here nor there. To be frank, considering this episode came from the minds of an all-white and (probably) all-male writing team, I'm very surprised this issue of racism (because that's what it is, don't get it twisted) was handled with actual care and consideration. That's why I'm surprised no one talks about this episode, but I'm glad no one does. It feels more poignant when it isn't discussed to hell and back, like a certain Teen Titans episode was...
"Squirrel Jokes" sits in my "Great" tier because, lesson aside, it is a pretty entertaining episode, even if the middle is somewhat lacking. Thinking of the lesson here, I think it was done mostly well, but I do have my issues with it, so altogether the episode has earned its place in "great". This review was very rambly and I get that, but will I edit it? No.
Episode Tier: Great
Episode Score: 8.6/10