The government already has too much power. For example, police currently have the power to kick in your door and shoot you in the head. Universal surveillance by definition will apply to those police (and all other government agents) and deter them from abusing those powers. The only thing protecting you now is your illusions, and illusions haven't been above 2/2 since Ice Age.
And we already don't have any privacy; again, only the illusion of privacy. You can't sacrifice that which you do not own.