I believe you're choosing the wrong responsable to blame but you're totally right about everything you say. Government as a type of political organization exists since Renaissance but every single type of organization before that went through similar corrumption. Civilizations are creating their own normes and punishes those who refuse to respect. We can also see that in various primitive ones and trust me their values sounds even crazier.
Social Contract written by Jean-Jacques Rousseau in 1762 shows us that every single type of human collective does that compromise we call social convention to live in "harmony". So I think the question should be if today's society's values are really compatible with our legislation and the way it's applied.
Capitalism favors power gained from pecuniary interets and to preserve that for their own personal or oligarchic interests governments and their agents are becoming more and more oppressive. And it's indeed contradictory with it's own foundation because it's supposed to be most liberal and egalitarian way to acquire power.
But I also have to admit that it's scares the hell out of me to go out of this secure zone because governments might be oppressive but who knows what would happen if we didn't "compromise" with governments "oppression". Either way let’s hope liberal economy and it’s « laissez-passer » (let them do) philosophy will evolve into something better then pure chaos for humanity !