The correct answer to this open question is the following.
Although you did not include the section where Jorge is criticizing Matt about his status (calling him an aristocrat), we can comment on the following.
I think the kids in the room that witnessed the action felt awkward and in an uncomfortable position. Calling names is not good, period. If the kids were there and witnessed the critiques expressed by Jorge, they could have asked what was wrong with Jorge and why he had some prejudices against Matt. Instead of criticizing, Jorge should have respectfully shared his feelings with Matt, and had a decent discussion, listening to each other arguments.