It doesn’t matter who’s doin’ the takin’. If your property is being confiscated even as you grow it, you are going to either quit working so hard to make more property, hide that property better or move to a place where that property won’t be confiscated.
The fact that the government is taking that property doesn’t matter; at some point people just reach a limit and slow down.
So what happens when the confiscation stops? Growth occurs. Witness Michigan.