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.