The purest version of this model stopped because it became a victim of its own success. As the economy exploded, the absolute lack of government regulation created severe crises—mass overcrowding, dangerous infrastructure, worker exploitation, and social unrest. Ultimately, the market could not fix these social failures, forcing the colonial government to step in. Which, interestingly is not so different from what we see in today's succeful places. Success ruins the best system as it looks like. The problem to regulation is that we only keep on adding new regulation and never retire old one. Like bad legacy software. We should keep the framework leen and probably start over from scratch sometimes. But we don't and we are doomed to end up in ever worse systems.