Re: 88HP 1988 Johnson
Take this for what it's worth and understand I'm no expert, but I'm trying to brainstorm and help you trouble shoot. But this is something I personally would try first. Hopefully one of the experts on here can chime in and tell you if this will work or not.
Next time you're on the lake, put the motor in gear then remove the cowling. Reach down and find where the throttle/shift cable is connected at the motor and push the lever towards the back of the motor. This will ensure (hopefully) your motor is in gear (if you're not sure where that connection is, remove the cowling with the motor turned off then push the throttle up/forward like you're in the water and look for the cable that moves) Then take it and run the motor up to see if it "races" again. Does that make sense? If it runs fine, then your cable is either worn/stretched or out of adjustment. If it acts like it goes into neutral again, then remove the lower unit and make sure your shift rod is at the proper height (you'll need an OEM manual for that). If it's not at the right height, adjust accordingly (simply turn the shift rod in or out to obtain the proper height). If that still doesn't correct your problem then it could possibly be the clutch dog. But before you go throwing money at the motor, lets rule out some of the simpler things.
This is why I asked if your motor goes back into neutral or not. Even though your shift/control box shows it's still in gear, I'm wondering if your cables are out of adjustment that it's causing your lower unit to not go into gear completely and the higher rpm's and torque are actually causing your motor to pop back into neutral.
This may not be the case, but it's something I personally would look at and try to see if it fixes the problem.