I'm not going to hang out with my friend
Are you not hanging out with your friend because he's mean?
Yes, he has so little respect for people, I honestly don't think it's going to change.
It is ok not to have time to hang out with friends occasionally. If he is mean to you, you don't need to make time for him.
It's not about having time, he does not respect me and everyone else.
Even if you have time, your valuable time doesn't need to be wasted on a friend who is mean to you. Tell him he is mean and move on from this friendship.