Both Nazism and Stalinism rested on illusions - the illusion of the great Caucasian race and the illusion of a messianic proletariat. These illusions derived from deep psychological forces, which it would be the proper task of psychoanalysis to understand and to oppose. At the individual level, fantasy will always have the function of correcting an unsatisfactory reality, but collective illusions are poor substitutes for objective world-interpretations based on what Habermas calls communicative rationality. But completing the process of secularization is still a priority task, especially in this age of unbridled Fundamentalism. This is true of individualism, but what is at stake is not individualism, but the individuality.
Individualism is an ideology, individuality is an ethical ideal.
Psychoanalysis, I think, implies a clear commitment to the goal of full individuation, against any attempt to drag the subject back into the horde or to dissolve it into holistic communities. Finally, Dr. Kernberg is somewhat diffident of universalism. Here I must plead guilty. Yes, I am suspicious of social integration achieved through nationalism. The price of internal cohesion may be hostility directed to an external scapegoat.