Seems like you're concerned about what's mostly a hypothetical when done by the state today- but probably hundreds of millions of people in the US alone are being coerced to do things they don't want to under threat of losing the exact things you're worried about. And in a lot of cases, what's one big thing mitigating that coercion? The very social safety nets you're worried about!
There isn't just one Government in the US. What we have is a system of branches, each of which must agree that a law is acceptable. If just one branch disagrees then it can effect change.
Similarly we are not just one state. We're a federation and individual states can fight against federal laws that their constituents find unjust. Washington and Colorado did just that when they legalized marijuana. It's still illegal at the federal level, but the ATF has no jurisdiction within state lines so they can't do anything about manufacture and sale within state borders.
Consolidating that all under the same umbrella erases a lot of the very complexity that serves to protect you. And you can't accord that complexity to a corporation because shareholders and the board have a level of tyranny not found in our government.
We can elect legislators who are opposed to abuses like Guantanamo Bay and campaign on fixing it.
What can we or the private sector do about abuses in the private sector?
The private sector is not above the law. The problem is that the government is. This is why, while both can misbehave, I see governments as a much, much larger danger to the average citizen than corporations. And the history agrees with me.
>market misbehaving is punished by the market through the consumer.
Can you explain how the consumer punishes private sector entities engaged in human trafficking, for example? It seems there's plenty of evidence that deception and cutting corners is the most market competitive behavior that corporations can employ which allows them to offer the most appealing prices. Therefore market misbehavior is rewarded, not punished by consumers because the price signal is too reductionist to capture all of that.
>And the history agrees with me.
That is debate-able