A lot of people who live in dense environments are already surveilled every minute of every day, the surveillance is just not centralized. At home a voice assistant listens to everything, and the apartment building probably has corridor cameras. On the street cameras watch from neighbors with doorbell or security cams, store and parking lot security cams, traffic cameras, gopros, random streamers etc. If they work in retail most of their workplace will be on camera all the time. What would have psychological effects is an authoritarian nanny state monitoring those feeds all the time for any potential infraction, not the surveillance which is routine and actually pretty reasonable.