Is the self-esteem of individuals tied to their nation? If so, is that a good reason to strive for a world of safe, secure nations? Many liberal nationalists answer yes to these questions, but they do so without looking at the large social-psychology literature on groups and self-esteem. We examine the claims of liberal nationalists in light of this literature. The good news is that self-respectWe use the terms self-respect and self-esteem interchangeably. and group identity are strongly connected and can lead people to place collective interests above individual interests. The bad news is that the liberal-nationalist assumption that low-status groups have little self-respect and majority groups have it in abundance is mistaken. Perhaps most worrisome is the competitive nature of collective self-esteem: people feel better when their group does better than others. This competitiveness can lead to outright hostility when groups compete for resources and political power. Self-esteem is clearly an unstable foundation for a liberal nation. Although we do not think that problems caused by national identity and self-esteem can be fully solved, we do suggest ways in which they can be contained.