A government agency, which might even have good use for the data, isn't the problem. The problem is sending your precise location to Facebook and a two dozen silly little games and a note app, which all sell this data to anyone and their brother.

By framing the problem as being with untrustworthy government agencies rather than with greedy data brokers selling data everywhere, you are part of the problem. You may distrust your government as much as you'd like, but before we solve the problems with private data brokers, we can never improve the situation.