Supreme God has all the power to direct the way we live, then why He is not doing it?

Although the Personality of Godhead is all-powerful, He never interferes with the little freedom that the living entity enjoys. The living entity is very minute, he is part and parcel of the Absolute Truth and so has a proportionate measure of independence. Thus the living entity is free to abuse his small measure of independence and become conditioned by the modes of nature. When he becomes conditioned by nature’s modes of goodness, passion, and ignorance, he develops those respective qualities of goodness, passion, and ignorance. As long as the living entity remains conditioned by material nature, he has to act according to his particular mode of nature. If these modes were not acting, then we would not observe in the phenomenal world such as a wide variety of activities.

If out of ignorance of the subtle laws of nature, we were to try to justify all our mundane deeds by saying that they are being done by the will of the Personality of Godhead, then we would be bringing partiality, inebriety, and gracelessness into the acts of all-good Personality of Godhead. It should never be imagined that the various mundane discrepancies arise by the will of the Personality of Godhead – that some are happy by His will, while others are unhappy by His will. Such differences in the material world are due to the proper or improper use of free will by the individual living entities. Krishna, the Personality of Godhead, enjoins everyone to give up all such conditional engagements dictated by the various modes of nature. Such engagements arise out of ignorance perpetuated by the modes of nature, not by the Lord’s will.

Source: A.C. Bhaktivedanta Swami Prabhupada (2012 edition), “Message of Godhead”, Page 56