That's the point. THAT IS THE ENTIRE POINT!
The more rules in place, the more leverage a government has on its citizens. And when that government can collect and store the data easily and cheaply, the information can easily be weaponized when needed.
In other words, it's a way for the government to keep the population on edge. Worried about day-to-day survival instead of looking at the bigger issues, like blatant corruption and cronyism.