Any nation that has the government "holding the hand" of its citizens by levying lots of taxes, having trade protection, and having many economic regulations. It is used very pejoratively by people that believe in freer markets, private institutions, and tax cuts.
Person A: I advocate for socialized health care. It will benefit us all.
Person B: Nah man, I don't want the U.S. to become a nanny state!
Another term for "failure."
Person A: I tried to be funny, but they threw tomatoes at me...
Person B: You're such a failfag.
A phrase usually said in jest to mock another person's idea. The idea is usually stupid and lame with little market value.
Person A: Okay so get this...how about for a new video game, we pit four players against a zombie invasion! Except here's the twist: all the zombies are CLOWN zombies!
Person B: FUND IT!