This paper uses conceptual economics to analyze the consequences of the rising racialgender hatred and partisan polarization on the political economy of the United States. The upsurge in hate crimes nationwide is due to the politicians' peddling of hatecreating stories and false narratives. This paper identifies and discusses the three interdependent institutions through which hatred and partisan polarization could destabilize the political economy; and tests whether the increasing racial-gender hate crimes, partisan polarization, and government shutdowns have adverse effects. The statistical tests confirm the research hypotheses about the rising racial-gender hate crimes; and that partisan polarization and government shutdowns have negative effects on Congressional productivity in the United States.States (POTUS) has consistently accused our allies as "free riders" and exploiters in global alliances and trade. In addition, I use a simple game theoretic framework to show that Democrats (DEM) and Republicans (REP) are players in a political game of tit-for-tat; therefore, the retaliatory tendencies from both parties will exacerbate overt hatred and partisan polarization into the foreseeable future. Since both parties are scared of the REP-POTUS and are afraid to enforce the rule of law and all political norms, the complicity would enable the unchecked dictatorial propensities to undermine representative democracy and destroy global alliances that relied of the United States' leadership since World War II.As further contribution to the literature, this paper identifies three categories of interdependent institutions -economic, political, and social -through which I examine the effects of overt racial-gender hatred 1 and partisan polarization on the political economy and representative democracy in the United States. To date, researchers have not examined whether hate crime laws pre-and post-the Hate Crime Prevention Act of 2009 were effective in reducing hate crimes or analyze the effects partisan polarization on the three interdependent institutions in a representative democracy. There is no doubt that strong economic, political, and social institutions are pivotal in nurturing the growth and sustainability of representative democracy; therefore, the contention is that the growing racial-gender hatred and partisan polarization would weaken these institutions, global alliances, and thus undermine representative democracy and the political economy of the United States.Another contention is that in this era of growing overt racial-gender hatred and extreme partisan animosity characterized by toxic tribal politics, it appears that Congressional Democrats and Republicans are too reluctant to perform their Constitutional duty of providing the required checks and balances. In doing so, they are enabling a REP-POTUS or a DEM-POTUS to weaken the institutional (economic, political, and social) bedrocks of representative democracy in the United States. This implies that a REP-POTUS or a DEM-POTUS can contribute to and normal...