And the reason that it's much scarier if private companies abuse privacy than if the government does it, is that you yourself decide who the government is. You don't get that right wrt a private company.
"Gubment" is pretty silly, though.
http://books.google.com/ngrams/graph?content=SPELT%2BSpelt%2...
from the people that authorizes budget, to the contractors in hawaii reading your info, to the agents in CIA/FBI building evidence against you, to the cops arresting you...
not a single one is your representative. Your only representatives are all in the same dark as you are.
As a practical matter, you have a lot more to fear from corporations misusing your private data to deny you jobs, mess up your credit, etc, than you do from government misusing your private data to shut down your anarchist political movement.
It is hopeless to expect the gov't to not do whatever corporations commonly get away with.
Once the corporations do it, the information in question becomes private property. Now all the gov't has to do is persuade the corporation to hand over or "sell" some little nuggets of their private property. As it is private property that is not yours, it is none of your business in the eyes of the law whether these nuggets of private property are dizzyingly complete records about you.
Large business, owned by very rich people. Without campaign contribution limitations and regulation, the voice of people is drowned out by the flow of money. We're about the least regulated in that respect in about a century.