I really wouldn't call the gov't incompetent as much as bureaucratic, which can make them appear as incompetent when mistakes are made and no one wants to take the blame. I wouldn't say we're democratic as much as aristocratic. If I killed my wife I'd definitely go to jail, but a rich person just pays money (albeit, perhaps, quite a lot of it). I'm of a mind that you should be able to do whatever you want so long as it does not infringe on the rights of others, it's the latter part of that statement that leads to interperatation by self-motivated individuals. For example, many people view insurance scam as a victimless crime when it's anything but, both in higher premium costs at the consumer level and reallocation of resources by the companies. But you cannot force altruism on people, we are by our natures egocentric beings. We are all manipulated on some level by the government, sometimes to a good end sometimes not, but the rights of the individual play only a small part in the decision process. Unless, of course, that individual has a lot of money...
This all smacks of socialism/communism, whose fundamental flaw is the same as democracy. People are self centered, power corrupts. What's the solution, revolution? What motivates a person to perform for the common good? Certainly, this departs from the topic but the issues which arise from the discussion are quite germaine to this topic. The best influence you can hope for is a positive effect on the people you intract with.