And it used to be like that here in The US only a couple of decades ago.

Now, the police stop and frisk. As in, you are walking down the street, police screech to a halt, jump out of their car and have you suck wall while they feel you up.

Police today can confiscate things that are related to drug crimes. Money is associated with drug crimes, so the police can take all your money. And then you have to prove, if you want the money back, that you weren't using it for drugs. The police are now stealing more than all the reported burglaries.

I must state, that in small town USA things are much more like you experience. I think it has a lot to do with everyone knows who the police are. And everyone knows everyone.