Do you leave your doors open all the time, allowing strangers through your abode to perhaps help themselves to a drink or use your toilet? Some degree of personal privacy is necessary for most people to feel safe. There aren't many cultures that do have completely open living arrangements, and those that do tend to be small tribal affairs where people generally know each other.

A system of prison-labour combined with house arrest or curfews - if you look at it from a government perspective it is possible to imprison everybody.

I suggest you spent some time reading about oppressive governments before you state you can't do it.