Think about this one, start a populist stupid referendum like: "Should the gov give you $10M?", I could bet it will end up at 90% yes and the entire country ends up in ruins. So democracy is good but you need some sort of trust in the middle. With this backward law, the trust is eroding.
I think people might agree with that if they alone were going to get the money, but far too many people vote against their own interests to keep "the wrong people" from getting anything. They'd never allow a "give everyone 10M" referendum to pass.
Who is "we" though? The elites with interests counter to what's best for the people, for example, surely want the opposite.
In actuality, most of the stupid decisions that drove countries to the ground are made by "respected statesmen".