Any punishment designed for deterrence is based on the following calculation.  The potential criminal weighs the benefit of the crime against the cost, where the cost is equal to the probability of being caught multiplied by the punishment if caught.

Taking surveillance technology as given, the punishment is set in order to calibrate the right-hand-side of that comparison.  Optimally, the expected punishment equals the marginal social cost of the crime so that crimes whose marginal social cost outweighs the marginal benefit are deterred.

When technology allows improved surveillance, the law does not adjust automatically to keep the right-hand side constant.  Indeed there is a ratchet effect in criminal law:  penalties never go down.

So we naturally hate increased surveillance, even those of us who would welcome it in a first-best world where punishments adjust along with technology.

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