I don't think the meaning that you give to that word is the same as the one used in the rest of the world. Democracy is about elections (presidents, referendums, whatever), where every citizen is able to participate and vote freely. And in that, US may well is (and has been for quite some time) functionally an oligarchy.<p>That a legally elected government then oppress part of the population, put weird laws or sink the economy is within the rules of the game. Citizens are responsible for what they choose, at least if they all can choose for it freely.<p>But if whole sections of the population can't freely participate, or can be punished somewhat if doing so, then you didn't had a democracy to start with, even if the government was a symbol of peace and prosperity.