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I agree with both you and davidw that loyalty towards a country is wrong from a formal point a view, but since humans are not entirely rational beings one cannot deny that the random entity you happen to get born into shapes a big part of who you are. Hence, the loyalty to the group of other people 'like you', whatever that means.

Then loyalty to the random people who happened to have the same parents as you is also irrational. Wait, this can't be right...

This whole discussion is off track. Terminal values can't be rational or irrational, they just are.

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