by Nathan McDonald, Sprott Money:
Governments do not produce and they do not create. At best they facilitate various services—and oftentimes very poorly when compared to the private sector. However, what governments do fantastically is collect and spend the resources that the private sector creates.
This, of course, is accomplished through the incredible number of taxes implemented throughout our history, whether it be sales taxes, income taxes, property taxes, inheritance taxes, etc. The list goes on, and still, governments around the Western world have found ways of squandering this money, sending their nations deeper and deeper into debt.