If your business operates outside of the law of course it should be shutdown. I think fines are a good way to cause compliance without causing more harm than necessary.
Are you advocating government not be able to influence businesses to comply with the law at all?
GDPR is actually a very well thought through piece of legislation and I've implemented compliant systems: best rule of thumb I heard - treat peoples personal information as if it is credit card data and you will comply in a fairly straight forward way.