Government? As others have said, government may well contract it out to private companies. But surveillance by private companies who have the government's ear isn't much better.
People understand? You're almost certainly wrong there.
It's the opposite that is true. Governments can selectively enforce laws against companies based on whether they comply or not, and pay them for whatever they want them to do.
The wealthy and their companies own Congress and the Executive because those positions rely on publicity to be elected, and they own the judiciary because the judges are both aligned with political parties and completely bribeable. They do not, however, exactly own the secret police funded by secret budgets - that's where the real executive lies, and that's where efforts are coordinated and conflicts between powerful blocs are adjudicated.
The performance we get is meaningless. The only important parts of the show we get to watch are following where the money is going and watching who state power is currently killing.
> People understand? You're almost certainly wrong there.
People certainly do understand. The media and the upper-middle class have made it almost a religion to spend their entire political life calling those people crazy. Why have upper-middle class people chosen such a stupid religion? Because a lot of money has been dumped into their stock portfolios.
No its much worse. At least democratic governments have some semblance of democratic accountability and of course some inability to work at scale. At worse they can just pay the private company, they generally will have lower capabilities unless they can hit an infinite money glitch (in which case they can use that to pay private companies)