The gains in simplicity were apparently not viewed as offsetting the costs of changing from the current set of rules to a purportedly simpler system. The intent of the proposal, by the way, was to reduce regulatory burden on smaller banks while ensuring that their capital remains at prudent levels.
In its place arose the view that government action was required to restore full employment. More broadly, government intervention was increasingly seen as necessary to correct the failures and deficiencies viewed as inherent in market economies. Laissez-faire was rapidly abandoned and a tidal wave of regulation swept over much of the world’s business community.