For the sake of this post, we'll define privacy as the goal of protecting sensitive or confidential information related to our personal lives (whatever that may be). Furthermore, we'll define security as the goal of protecting valuable data (this includes trade secrets, credit card information etc.). Of course, these definitions are far from being comprehensive or even accurate, but they'll suffice for this post.
So, what's more important - or more specifically - what should we be more concerned about: our security or our privacy? Many security advocates state correctly that security is a basic need and so is far more important. This argument is usually used in the context of homeland security, terror etc., but the same argument stands for financial security. It is clearly much worse that someone steals all my money than it is to have my private life posted on the Internet. However, the line is not always so clear. What about leakage of my medical history? This is a privacy issue, but one that can have a great effect on my ability to earn a living! Nevertheless, there is another distinction that is less-often considered, and this is the issue of recovery after the fact.
It is typically possible to recover from a security breach, albeit with a lot of time, hassle and some money. Victims of identity theft can attest to the problems they incur when trying to get back control over their identity. In some cases the damage really is huge, and I am in no way belittling the suffering of these people. However, in most cases, the result is a huge headache and a small financial loss. In contrast, once someone's privacy has been breached, there is no way of recovering! It is impossible to recall information that has been posted on the Internet, or to recover dignity after one's entire community learns a person's secrets (note that the person need not do anything criminal, but it is enough for them to be somewhat deviant in some way). Thus, at least in this sense, a breach of privacy should concern us much more than a breach of security.
Just to set the record straight: I am not saying that we should focus less on our security. Rather, I am trying to make the point that we have to take our privacy seriously as well, and to realize that at least in some ways, a loss of privacy can be worse than a (temporary) loss of security. I also want to encourage everyone to educate youngsters about the importance of their privacy and to stress to them that posting personal information in semi-public domains on the Internet can be very bad for their future. It's bad enough when someone forcibly takes away your privacy; it's much much worse when you voluntarily give it away.