The state should both monitor everything and control everything and monitor nothing and control everything because there is no "state" as you put it, there is no uniform mind in the government, free of the desires and imperfections it is supposed to protect us from, there is only a collection of imperfect human minds carrying out duties to run the basic amities for most, and to gain more power for themselves, therefore that is why I say it should monitor nothing. If the state were to become a prefect entity, but perfection to humans to imperfection to all else and as a state should look after the land then a perfect state cannot exist.

The state should meddle enough to protect as many from harm as possible. weather that harm is crime or poverty.