This song very well could refer to nuclear power/energy/weapons. Hypothesis arises from a) the time period when it was written (early 80s), b) specific lyrical content, c) the title's reference to a Godzilla-like creature (Godzilla's origin being due to radioactive fallout from an atomic bomb test). The "lizard" (nuclear energy) is cheap and a seemingly clever idea, but you wouldn't want it in your own backyard b/c of the dangerous waste that it produces.
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