Of course included in "production" are needed services including but not limited to medical, educational and public services including modern utilities and government.

Education essentially "produces" people with the skills and abilities to work.  Unfortunately education and government have gotten married and they want to shape the religion (through humanism) and establish the morals (or lack thereof) of their children, though this job is better left in the hands of individuals and families.  The freedom to do so is what the bill of rights intended.

Government "produces" law, order and protection (military, fire and law enforcement).  Our wise founding fathers seemed to have intended the government to provide only these limited and critical powers.  It appears that our current government has evolved into a major source of dead weight in our top heavy economy.