How was James Goldsmith wrong?

James Goldsmith argued that a central problem with modern economies is that national industries – and the cultures, communities, and social values that they supported – are sacrificed at the altar of economic indices in the name of “free markets”.

He predicted steep rises in poverty, crime, social tension, and ultimately – and consequently – populism.

I find his analysis quite irresistible. From an Austrian perspective, empirically or theoretically, how was he wrong?

To be clear: his argument was NOT that all free trade is bad. Rather, it was that: (1) the purpose of the economy is to serve a national society, and (2) free trade is bad insofar as it is contrary to that goal.

Interested in your thoughts.