The “competition” between countries that Hammond describes bears no relation to competition between firms in a market. The latter can be beneficial but the former is always harmful. Think of the difference between a failed company and a failed state.
What, a failed state like Venezuela? Which failed from too much government of the wrong sort? Zimbabwe?
Or even 1970s Britain with anyone who could getting on the plane to leave?
Competition between countries works exactly like that between companies – although as Ol’Adam pointed out there’s a lot of ruin in a nation so it takes rather longer. States which enact bad policy lose the citizenry eventually, the very thing which limits the bad policies that will be imposed.
This is different how? And wouldn’t we actually want to limit this enactment of bad policy anyway?