Our tolerance does not come from a place of white guilt but from superiority and abundance mentality.

This was part of it for America too.

I think it's still a bad thing. If you're going to invite foreigners to live in your home, you have two options with them if you do not want to lose your home: a) keep them as second-class citizens (often considered unethical) or oppress them some other way, or b) make sure you are always better than them and so stay in charge. And even then, it's impossible not to blend with them because they will be able to contribute something.

So it will always create an atmosphere where your people are forced to compete with their neighbors for the very survival of their people... when they should be cooperating with their neighbors for the survival of their people.

I would suggest that nobody is so superior or abundant that this is a good idea. There are much better things to do with those traits, both for your own people (who deserve not just to "be happy" but to continue to advance and develop) and for foreigners who could be friends and allies.