That's how I see it. We are not all criminals. People become criminals based on the next emergency like crack, 9/11, Japanese people, or whatever. These emergencies cause the state to become draconian.

Digital ID laws make it easier to find the people responsible for the next emergency. "The Enemy" is easier to find in the digital panopticon. Of course, the non-government boogie-men want the information too, so the attack surface is even worse.