First and foremost, you have a choice. Let's accept it—working in this condition is your choice; the other choice is to resign and look for a job, which you have not chosen—rightly so. So, you must accept that you have two choices and you have decided to make this choice. Once you accept this, you would not feel helpless.
Having accepted that this is how your organization works, work as if everything is right. Since you have chosen to work in this environment, why not work with positivity and be happy rather than work with negativity and be sad and stressed? Your being negative and sad does not change the environment for the better anyway. While you are there, perform as best as you can; hopefully, you'd be in a position of strength, and there are better chances that your boss will listen to you and your problems.
Whenever you are sad again about your condition, remember, you have chosen to work; no one has forced you to work here.
Your organization must have gone through tough times during the lean phase, which might have prompted them to focus internally on productivity. Many companies are strict about wasting time in chit-chat, personal calls, etc. If you look at the BPO industry, cell phones are simply not allowed. You submit your phone when you get in and get it back after your shift! Every organization has its compulsions; let's not label them as jail. You do not go to jail by choice!
Having said this, I do not mean that you should stick to this organization. Obviously, this is not the best place to be in. With the market opening up, changing jobs is going to be easier—but do not expect anything overnight. Keep trying.
Sorry to sound so harsh.
Be happy always.