The regular people lose immediately by being stolen from to pay for the government and its projects. They lose when their liberties are violated along with their "inalienable" rights. They lose when they are killed for breaking some counterfeit "law".
And eventually those in government, and those Useful Idiots who have supported and advocated a powerful government, lose when the "chickens", which they have so carefully bred and raised, come home to roost. It may even be a law of the Universe.