It doesn't follow because what you have presented as my system is actually a straw man that bears no resemblance to what I described, which is actually called direct democracy.
http://en.wikipedia.org/wiki/Direct_democracyAnd if you think social institutions aren't breaking down in Western society you aren't terribly observant. Certainly this has occurred in the past. The Roman Empire, for example, collapsed because it's social institutions broke down due to internal corruption.
Part of the natural cycle of Empire. We'll undergo the same. We are undergoing the same.