A government that is in the gutter - one that is malfunctioning or corrupt. A government that is at an all time low in terms of quality, performance, and morality.
Furthermore, a gutterment is a government that's clogged with red tape, bureaucracy, and incompetent/corrupt leaders to the point that it is nearly impossible for that governemnt to function properly or get anything accomplished - much like a gutter that cannot serve it's purpose of letting water flow through it freely because it's too clogged with leaves and crap.
The U.S. government
BENNY: Congress took 10 months to decide on that bill, then the President refused to sign it, so it went back to Congress 13 times, and when the President FINALLY signed it someone said it was unconstitutional, so now the Supreme Court has to decide whether it's Constitutional or not - and I can only imagine how long THAT's gonna take.
JOHN: That's the gutterment for you.
BILL: I had to go through 17 departments and 15 inspections before the town gave me the permit to build Fido his dog house in my back yard.
PAUL: The gutterment makes life so easy, doesn't it?
JACK: So this congressman proposed a bill to help fight the War on Drugs, and the next day he gut busted with a kilo of crack a joint of weed. So then congress decides to give him $500,000 of the taxpayer's money to compensate him for the "trauma and public humiliation" he experienced as a result of being arrested.
RANDY: we truly do have a great gutterment.