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I'm a bit conflicted about this issue, because I can understand how the invasion of privacy issue can grate on a kid's nerves.
However, I think that if you accept money from someone, you accept the fact that you owe them something back. If a kid is given a car or has their insurance paid for them, then I think the parents are entitled to the security of their "investment," besides the obvious safeguarding of progeny.
As for the government, there should be absolutely no oversight. Ideally, someone should have to do something wrong before coming under scrutiny. While that is certainly not the case (and seemingly less and less so), that does not justify further violating privacy.
If the government paid for the entire transit system (i.e. mass transit) I would accept the spying, but since they only pay for the roads they should continue to patrol only the roads, not the vehicles.
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