I was wondering how this applied to the function of the government, and it's use of resources that are owned by taxpayers.

In my opinion, since the government is more powerful, and can violate the will of any individual, the nation, and it's money essentially act as a commons for the individual members of the government to destroy as quickly as they can.
I believe the best illustration of this is the lack of any kind of slush fund for social security, even though the program had a surplus for many years, and was meant to be held as a sort of insurance for those who qualified for it.  Now, there is a social security deficit and there is no money in this "slush fund" to mitigate the costs imposed upon taxpayers.
Also, I would like to add that the analogy is not exact, as there is a sort of feedback loop between the society that collectively owns the commons, and those who have access to it that does mitigate the effect somewhat.

Any thoughts?

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Deus ex Machina

It was caused by fisical liberalism and pork spending through the use of SS funds as general funds as well as direct raiding by every president since its conception.

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"Well this is new....and scary" - Serena on a Convent Scarab