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Governments don't have to be competitive if they mutually limit migration - and this is one problem.

People need the option to leave a system that doesn't work for them, or that system won't see a need for change. The same competitive forces that are so important to capitalism should apply to nation-states as well.

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They do have the option to leave, and looking around London that's exactly what they're doing, which is not good for the countries they're leaving. I'd say it's more important that they have the means to change that system.

Why do you think it's bad for the countries they are leaving that people can go and find work elsewhere and gain experience and skills (and most likely, return with these)?

There doesn't seem to be much of a downside to me.

In the context of Spain: http://www.ft.com/cms/s/0/f7bdd5ce-995e-11e3-91cd-00144feab7...

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