Except government has much more power to misuse the information and cause you harm.

Google won't put you in jail, government might.

Governments have too many twisted incentives to be entrusted with too much information. US happens to be one of the better governments, but how successful our voting power was to end or prevent war in Iraq? Or how about recent witchhunt against craigslist? It's not easy to find examples of government doing serious damage.

Google can't start a war.

I would reconsider recommendation that we give government one bit more of power over people.