People act different at the bar than they do at work. They are the same person, but act differently in different situations.
Nazi Germany is an example of a closed society.
The main problem is that people also act differently in crisis. The currency fails and it's time to identify all the Jews. Some planes crash into some shps and it's time to lock up everyone of Japanese decent. The 8h amendment is fragile. Privacy is necessary to protect the inalienable rights of individuals.