Here is a crazy but real story. At one point in Canada I had a friend who worked under the table in one of the larger metropolitan areas. He was making just a tiny amount each month basically being a waiter at a local watering hole and always had a hard time making ends meet. So one day I started talking with him about why he didn't want to apply for welfare, or some other benefit etc -- remember this is Canada, which has a bunch of social safety nets.

His thinking was that he didn't have a birth certificate, had no idea where it was, and he was WORRIED that if he brought this to the government's attention he could be declared a "non-citizen" and might be...well..he didn't really know. He was very fearful of this.

Eventually he found a girlfriend who was a friend of mine and we convinced him to sort out the situation and everything worked out just fine (he was obviously NOT the first person in Canada with this situation). But imagine he had gone for all these years avoiding the government just because of this line of thinking. So there is something to your point here about the fear of bureaucracy and scrutinization.