Democracy is not a good system, and it isn't the best we have, either. Allow me to explain why.
The democratic leaders have limited terms. After (usually) four years, they're gone. In these four years, they can freely loot and plunder the nation, whereas a monarch has to make its resources last him for an entire lifetime, as well as that of his children. That the state isn't regarded as their property amplifies this effect. They can dispose of its use value, but not its capital value, so they will not have an incentive to take care of the latter. This is shown in how taxation exploded after 1918, with the downfall of monarchy in Europe. Before 1918, taxation tended to be around 10% of your income, now it can be as high as 50%.
When the state can freely take away your earnings and savings, then you will not earn and save that much. This tends to make people more shortsighted. Instead of planning ahead, they will live in the moment, and will not be interested in starting families, acquiring useful skills or making informed economic decisions. A process of devilization occurs. Crime and deviancy increases, which the state takes as an excuse to engage in ever more social planning.
With the voters becoming more and more shortsighted, with honest work becoming less profitable, and with the state giving them the tools to engage in plunder, the voters and the lobbyists will do just that. Interest groups will spring up and demand their "fair share" of the wealth of their nation. This is the tragedy of the commons all over again: It's like you had a limited grass field, and ten cattle herders letting their cows grace on it. Cooperation is a losing game; the most profitable course of action is to only look after yourself.
Democracy is not just a threat to the citizens, but one to the entire world. With the behavior of the state being a public affair, the frequency and the scope of war becomes worse. In old times, the kings had to fund their armies themselves, and when they conquered a region, they had to make use of the resources in it. They had no interest in conquering barren land, which is why collateral damage was unheard of and the lifes of their soldiers had a value. The people in conquered regions often stood by and watched as the armies fought. It was like entertainment for them. Driving the enemy off his land was usually the goal of the lords, not to vanquish him.
We can see the failure of democracy daily. Laws become more and more invasive, the people more dull and shortsighted, respect for the life and the property of others decreases. The only long-term solution is to abolish democracy.
