Invisible Hands: Episode 5 - The Lucky Gambler

The History Podcast hosted by BBC Radio 4's David Dimbleby

Introduction and Context

In this episode of Invisible Hands, David Dimbleby delves into the intricate history of the free market revolution in Britain, focusing on the influential yet controversial figure James Goldsmith. The episode explores how Goldsmith's actions and ideologies both shaped and challenged the prevailing economic doctrines of his time.

James Goldsmith’s Early Life and Business Strategies

James Goldsmith, portrayed as a quintessential free marketeer, began his journey with a penchant for risk-taking. Dimbleby recounts Goldsmith's early gamble at Eton, where a successful horse bet led him to leave school at 16 to forge his own path. Goldsmith's business acumen was evident early on, particularly in his acquisition of Bovril.

Notable Quote:

"He wanted to establish the Goldsmith name and to make a colossal fortune."
— James Goldsmith [08:17]

Goldsmith's strategy involved identifying and exploiting hidden values within companies. By purchasing Bovril, he recognized that the true worth lay not in the product but in the company's vast ranches in Argentina. This approach became his trademark, characterized by ruthless efficiency and a deep understanding of corporate finance.

Notable Quote:

"What they were buying is these awful companies, and they were selling the bits they didn't want, reconstructing the good bits, and then they went on to the next one, and it was exactly the same."
— James Goldsmith [10:52]

The Rise of Globalization and Free Market Expansion

The 1980s marked a significant shift under Margaret Thatcher's leadership, embracing deregulation and entrepreneurship. Goldsmith thrived in this environment, expanding his business empire globally. The dismantling of trade barriers and the advent of globalization enabled him to acquire diverse assets, making him one of the largest private landowners in the United States.

Notable Quote:

"He ended up owning all kinds of things, you know, whether it's forests in South America or the supermarkets in the United States."
— James Goldsmith [12:46]

Goldsmith’s Critique of Free Market Consequences

Despite his success, Goldsmith grew increasingly critical of the free market's societal impacts. He observed that relentless pursuit of corporate profits led to unemployment, poverty, and social instability. This realization prompted him to challenge the very system that had facilitated his rise.

Notable Quote:

"If purely for an economic doctrine, you have a situation whereby the economy grows, that you create poverty, unemployment and you destabilize the society, you're in trouble."
— Geoffrey Wansell [02:55]

Goldsmith articulated that the unchecked capitalist system prioritized economic indicators over genuine prosperity and social well-being, ultimately threatening societal collapse.

Founding of the Referendum Party

Determined to address these systemic issues, Goldsmith founded the Referendum Party with a singular aim: to hold a referendum on the United Kingdom's membership in the European Union. Recognizing the unpopularity of globalization among certain segments of the population, Goldsmith sought to capitalize on this sentiment.

Notable Quote:

"Freedom has to be fought for and it is only those who do so who deserve to be free."
— Geoffrey Wansell [23:27]

The party attracted a diverse array of candidates, including farmers, aristocrats, and even environmentalists, all united under the banner of challenging the established political order. Angela Kilmartin, a former opera singer and campaigner, became one of the prominent figures within the party.

The 1997 General Election and Its Aftermath

The Referendum Party's campaign, characterized by its populist fervor and charismatic leadership, aimed to disrupt the traditional two-party system. Despite their energetic efforts, the party secured only 3.5% of the vote, with no seats won in Parliament.

Notable Quote:

"He made the COVID of Time magazine with the headline the Lucky Gambler."
— David Dimbleby [14:09]

While Goldsmith's immediate political ambitions did not translate into electoral success, his campaign succeeded in elevating the issue of the European Union to the national discourse, laying the groundwork for future political movements.

Long-term Impact and Connection to Brexit and Modern Politics

The seeds planted by Goldsmith's Referendum Party bore fruit nearly two decades later with the Brexit referendum in 2016. The isolationist and protectionist sentiments he championed resonated with the electorate, culminating in the UK's decision to leave the EU.

Fast forward to 2025, the episode draws parallels between Goldsmith's predictions and the political landscape, highlighting the resurgence of outsider figures like Donald Trump who echo Goldsmith's anti-establishment rhetoric.

Notable Quote:

"We've just forgotten what the economy is about, what its purpose is. Prosperity and stability for everyone."
— Geoffrey Wansell [19:55]

Goldsmith's legacy, therefore, is not merely one of business success but also of igniting critical conversations about economic policy and national sovereignty that continue to shape British and global politics.

Conclusion

Invisible Hands: The Lucky Gambler provides a comprehensive examination of James Goldsmith's influence on Britain's free market revolution. Through strategic business maneuvers and bold political activism, Goldsmith both propelled and critiqued the capitalist system, leaving an indelible mark on the nation's economic and political fabric.

Produced by Joe Barrett
Executive Producers and Story Editors: Joe Sykes and Dasha Lisitsina
Sound Design: Peregrine Andrews
Commissioning Editor at Radio 4: Dan Clark
Special Thanks to: Phil Tinline, Peggy Sutton, and Leo Schick

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