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The reason so many people call the U.S. a democracy is because the definition of democracy has evolved over the years to one meaning a "system of government where the people select their leaders"
You'll find this is the underlying meaning of that word most of the time it is used in discussion these days.
You guys need to give Splum a break. He's excited because he just learned this today in his high school civics class, and ran home as fast as he could to share it with his new friends on GFY.
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