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What Americans and some other european nations think they have. What America actually has is a [representative] republic, where the people have to choose between 2 candidates (the others dont really matter, and no one ever votes for the [green party]) A democracy is where a nation is ruled by its people, rather than one person who gets into power using lies and then doesn't listen to public opinion. What a good government would be is that someone is voted into power, and all major decisions put forward by the government are voted on by the public. The person in power has [the ultimate] decision, unless there is a big majority vote against him/her i.e. more than 60%
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