I'm just dumping some thinking I've been doing. It's most likely ill-informed and grossly generalized.
The severe flaw of democracy (The first person who says, "BUT WE'RE A REPUBLIC" is getting smacked) is that no one person is in control and bureaucracy is in place to keep it fair. As a result varying interpretations of the rules leads to paradoxes and confusion in execution. As a whole the system works because we're not all dead or living in a the 3rd world, well most of us anyways. But it is not swift and organized as a totalitarian dictatorship or monarchy under a good ruler,the death blow to that system is succession of course.
Right now we have a strong contingent in our society that proclaims business as the way to go. However businesses are essentially there to make money, while it may benefit them to help society in the long run the immediate need to provide dividends to stakeholders will result in catastrophe (ie oil spill, housing crisis, credit crisis, energy policy ect..). Businesses behave much like faster moving totalitarian systems or even small democracies but due to their size. When compared to our bulky multi-tiered government they will of course seem more appealing since the average jerk on the street can wrap their mind around it.