There are several sets of people involved. First you have the ambitious. These are poloticians and such that probably aren’t really racist at the core, but are willing to act and be racist to get ahead. They are the real problem. But it isn’t hate that drives them. It’s ambition. For the people suffering, that doesn’t matter. But when it comes to solving the problem it does.

Then you have the people who are actually racist, hateful people. They do exist, but they are actually a very small minority. The rest are “followers”. They weren’t racist until someone convinced them to be. These are the people you can give better options to. Doing so errodes the power of the other two groups.

But where we are now… I feel like you might be right about a need for responding in kind. But, while doing so, remembering that overall, the follower group is not an enemy that should be eradicated, but one that showed be turned to a better side. So it’s kind of like making sure you don’t box them in and give them no way out but to fight. You need the followers to join you while you overpower the other two groups. And after, you need to make sure the followers have better options so that they don’t join up with the next popularist to appear.