Why is a democracy considered the most inefficient form of government?

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Ben Donahower answered
If you think of how a dictatorship makes decisions.  One person has the ability to unilaterally make decisions.  This is very efficient.  The dictator can declare X and then that is the law of the land. 

A democracy, however, requires a deliberative process in a legislature.  In American democracy it also requires approval from an executive such as a governor or president and finally is reviewed from time to time by the judiciary.  This is a much more cumbersome process than in a dictatorship.

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