Sure we could do what many naïve people on the internet want and seize the means of production, but who on earth would want to start a productive business or make productive investments in a country where the government can just up and seize your assets without justification?

That’s why you don’t create a legal system where “the government can just up and seize your assets without justification”. You create a system where it is clearly defined when it becomes acceptable to socialize a company, and what forms of organization and management it is going to take, and what compensation is the entrepreneur entitled to in exchange.