You've accurately described what could happen with right-wing authoritarians in power. You've not described what could happen with left-wing authoritarians in power.
Don't be fooled that your team doesn't have people with the same impulses. Privacy and civil liberties exist to protect us from abuse of authority on all sides.
- "Oh I see John is connected to this account. I really don't like this HN comment and opinion he posted, I find it deeply offensive. Put him on the bank KYC fail list."
- "We'd love to give you this mortgage backed by the US government, but why didn't you post the right flag in support of the new hip thing?"
- "Before you login to your retirement account, how much wealth are you secretly harboring there from this job we think you unfairly got due to your privilege?"
- "If you just let us monitor your activity and the ideas you see, we'll stop you from wrong-think and will create a utopia"