Other mistake: Near the beginning of the movie, the Dude is shopping at Ralph's. He is writing a check, and dates it September 11th, 1991. At the same time he looks up to see a TV with President Bush saying "This aggression (against Kuwait) will not stand." The incident against Kuwait started in the summer/fall of 1990, not 1991. The Stranger (Sam Elliot) and Walter also mention the Gulf War in the present tense.
Other mistake: As "Brother Seamus" slams the door of his Volkswagen shut before "fighting" The Dude, the volume of the radio drops, although he had the window rolled down and did not have time to roll it up before getting out of the car.
Answer: Generally, he means that the boy, Larry Sellers, is disgracing his family (Walter has huge respect for the boy's dad, but considers the kid a dunce). Specifically, Walter is blaming Larry for his father struggling to breathe; that's Larry's dad in an iron lung in the background. Walter and The Dude become louder, more insistent and more vulgar, but the kid still blankly refuses to answer, and all you can hear is the iron lung pumping in the background. Frustrated because the kid isn't intimidated, Walter lashes out: "You're killing your father, Larry!"
Charles Austin Miller