This as an extremely naive characterization of what google knows about you. Google would probably guess that much about you if you had never used the internet, but had a few friends that did.
For example, they probably know an enormous amount about your sleep habits (not just when, but where! ← from IP address data) and your travel (← from IP address data, not just Maps). There's plenty of noise in that data, but it's been collected over a long time.
They remember searches and interactions from many years ago that you don't. They might know about a fight or conflict with someone that you had in the past that you've forgotten. Thanks to Maps, they might know about excursions that you've taken that you no longer remember.
They may be able to determine things about the state or evolution of your relationships with other people when you're not consciously aware of those things yourself, in terms of patterns in how and when and how often you contact each other, and perhaps with what degree of affection or intimacy. (Obviously people often know a lot about the state of their own relationships, but they might not consciously notice certain kinds of gradual changes.)
If there are inferences that can be made from your searches, they might be able to make those inferences when you haven't made them yourself.
One example would be a disease that someone is trying unsuccessfully to self-diagnose (so they search for the symptoms), or a set of symptoms over a long period of time whose combined significance the sufferer never recognizes.
Another example would be a person who has same-sex sexual attractions that they haven't consciously admitted to themselves, but that are evidenced in some of their searches or search patterns or clicks on search results. (Or just other online activity; there was research about figuring out if people are gay from their Facebook likes, and there must be lots and lots of correlates.)
Clearly Google hasn't productized most of these inferences in the sense of making them available to advertisers to use for targeting. There are many possible reasons for that. Some inferences would require a manual analysis of data; some are too speculative and have too high a probability of error; some are too creepy or alarming to the user.
This actually makes me want to start a separate thread: What does Google know about you that you don't? (What questions about you can Google answer that you can't readily answer yourself?)
State governments are not "the US government". If someone says "the US government", they are either referring to the federal government, or need to do a great deal more research before speaking about US governance.
[0] http://www.bop.gov/about/statistics/population_statistics.js...
And that's just drug policy. Abuses by Federal agencies are numerous across history into the present day, and have often taken place on a grand scale:
FBI misconduct: http://en.wikipedia.org/wiki/Fbi#Controversies
CIA misconduct: http://en.wikipedia.org/wiki/Cia#Controversies
US Military Interventions since 1890: http://academic.evergreen.edu/g/grossmaz/interventions.html
[1]http://en.wikipedia.org/wiki/War_on_Drugs
[2]http://en.wikipedia.org/wiki/United_States_incarceration_rat...
Besides waging bloody, unnecessary war (War of 1812, Mexican War, Spanish American War, Vietnam War, Iraq War); instituting explicitly racist immigrating policies; waging a disastrous War on Drugs at home and abroad; instituting protectionist trade policies on behalf of rent-seeking corporations and unions; busting unions; interning thousands of innocent Japanese Americans; the mass expropriation from and relocation of thousands of Native Americans; and hundreds of less memorable abuses, not to mention its complicity with several of the ills you mentioned, yeah, sure, "pretty much the only thing" the US government has done has been protecting us from "the tyranny of private businesses".
I responded to what you wrote, which had no such qualification. And I mentioned several domestic policies.
> So your defense of Google
It wasn't a defense of Google, it was a criticism of the government and a correction on what you wrote.
> Of course the government fights alongside capitalists most of the time
Which is one of its problems.
I was involved in planning for a 200-year commemoration of the War of 1812. We invited the U.K. and Canada, amongst other nations, and they were glad to send representatives to the commemoration, despite the fact that the U.S. was at war with those 2 nations in 1812.
Put another way: you can enjoy the internet yet have little or no data go to Google. You cannot use the internet or the telephone in the US (and even, to an extent, in many foreign countries!) without data going to the NSA, with questionable benefit to you.
edit: typo
I'm not so sure about this. adwords/gAnalytics/some google tracking property is present on something like 40% of sites So they can see you leave one tracked property A, they may not know where B is, and then can pick up tracking you when visit C and then learn about B because of referrer data.
> tracking via ads and embeds often enables the sites you visit to sustain themselves, and, even if you want to quibble about how "consensual" that is, is trivially mitigated via free, brain-dead-simple browser extensions
So I addressed both its existence and the fact that there are issues regarding just how "consensual" the practice is. I concede that perhaps I should have used a term other than "quibble".
There are presumably technical differences in how this data is stored and processed over time, which may not be insignificant.
Delete data today and it might be wiped; delete data tomorrow and it might be parcelled into a company takeover.