The biggest fallacy of democracy as it is practised in many countries is that the democratic process is reduced to paying taxes, and voting every couple of years. Then you get to watch your elect representatives for four or five years and if you're lucky they don't screw up too badly. But anything they do in those years is completely out of your control. If they want to send the army to another country, they don't ask you if you agree. If they decide to bail out a few banks that got themselves into crap, they don't care if you think that's not a prudent use of your tax money. If they buy a new airplane for the president instead of improving education or health care, all you can do is watch. Sure, you can vote for someone else next time, but by then the **** has already happened.
If democracy were to involve people in more ways than just the passive voting process, you might find that more things happen the way they should.