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Well, actually, the most common interaction with police for citizens is traffic-related.

But the bigger grey area is where you mention "theft". Property owners can call the police because of suspicious activity, which is ill-defined. Those altercations can turn bad quickly, with assumptions made on both sides. Most police interactions are non-violent, but 1.4% of them involve police using force or threats. That number is far too high. (This is from the Bureau of Justice Statistics in 2008 report. I can't find a more recent one - there was something published in 2011, but it's hard to parse)

Mostly they are dealing with statute violations where there is no injured party, just an arbitrary dictate by a politician.

Maybe. Depends on where you are, but I think politicians have enough on their plate without finding more ways to oppress us. We're still free compared with some countries in the UK and US.

"Free" if you have all the licenses and permits, don't break any of the innumerable regulations, and carry your papers with you wherever you go, and don't make waves.

Hmm, I don't feel oppressed. Nobody is hassling me for papers. Okay, there's bureaucracy in some parts of life, but it's no big deal. The police I've met are nice people. Maybe it's not that bad

You don't hear the chains rattle much if you don't move much.