Report The "Government makes people produce more" argument in Economics Posted July 7, 2010 I heard this odd leftist argument on some other forums, and wonder what Objectivist Online folks would answer it with: ~ Government makes people produce more. You have to produce enough for you to live off of, and then produce more for the government to steal from you. In a totally free market, you would only have to produce enough for you to satisfy your wants. With the government in the picture, you have to produce extra ie., to satisfy your wants, plus the government's share. In this way, governments stimulate economies. That is, they force people to produce more than they normally would. This is a nice example of the primacy of consumption fallacy. Their premise is that there is a certain amount that each of us wants to consume, and we'll work just hard enough to get the amount we want. In reality, people aim at maximizing their wealth, and everybody will produce as much as he can (especially if production is not taxed); the factor that constrains the size of the economy is not how much people desire to consume, but how much they are able to produce.