A lot of that is due to a lack of training. There's two major ways new people come into programming.
1. Go to college, get a computer science or engineering degree.
2. Self taught.
Neither of those prepares you to deal with the ethics of information storage.
I happened to have an entire course on the topic but only because I took an Information Science minor with my Computer Science major. That course wasn't even an optional elective for me otherwise.
A computer science degree trains you for thinking how to do something. It doesn't teach you how to figure if you should do something.
IMO every SE curriculum should contain a mandatory course looking into historical precedents how information was used in genocides and oppressive regimes (Nazi Germany and the German Democratic Republic are two of the most obvious examples but there are plenty others).
It's ridiculous how it took Trump to get elected for the liberal techies in my Twitter stream to realise that the US government has the power to do really bad things with all the data FB & friends have been collecting.
On the other hand, the data private organisations collect is not restricted - neither what data is collected, nor how or from who.
If voter registration started to ask for skin color, there would be immediate public outrage. If credit scoring services include skin color as a scoring factor, it's a trade secret...
You pretty much need a state ID or drivers license, which lists your skin color. Political contributions are a matter of public record for anticurruption purposes. Vital records offices are more than sufficient for tracing ancestry. Welfare offices know who is poor and medically needy. Telecoms and the post office knew who you communicated with.
There was more than enough information to mount a holocaust on any of those axes long before the current crop of tech companies.
Again, this worst case scenario may not happen, but the fact that it can, even if only with a small chance, makes this massive data collection totally irresponsible.
Also it's a bit of a bizarre argument that tech companies are doing data collection on such a massively intrusive scale, we should really look at the government databases first because they're already more than enough to screw us over with? It's not even a "but they're doing it more!" ...
Files.
That said, I wouldn't consider it wrong, per se, to call it data or information these days. Strictly-speaking, old files and records do constitute data, whether they happen to be digitized or not.
I feel that the IT world is irresponsible in its collection of data, and doesn't treat it as the liability it is.
(What's the proper word for old data/information before computers)?