The government is part of the capitalist system. A vote is a form of capital. Votes can be exchanged. People pay for and consume government products and services. If they don’t like the way government is functioning, they can work to change it or get rid of it and form a new government. Government is no meta-economic entity.
Imagine a planet with no regulation of business and industry. It would be a burnt cinder without government regulation to mitigate the pillaging of resources and the effects of manufacturing. Not a pretty thought.
It is a Malthusian trap. No one knows how to regulate human population growth. Franklin warned of a population explosion in 1755. When people are well fed and comfortable, they breed like mad. Over eight billion on the earth today. A million more people every week. Malthusian trap.
Of course government is expanding. As people run out of space to live in, new laws and bureaucracies must be formed to regulate human behavior. Freedom decreases as population increases. You can’t do what you want so much as we try to fit more people onto the same pale blue dot.