Democracy, like all other forms of government, works fairly well within small groups. Let's say sub-200 people. It's easy to have an informed opinion on problems that affect 200 people that tend to share your culture, your outlook, your problems, your everything.
It's not so easy when it's millions of people that have entirely different experiences. Add in the complexity of the modern world and hyper specialization of knowledge...not so good.
I don't have any suggestions to move to a better system. I don't know if there is a better system, but I think the current crisis in confidence stems from an world of increasing complexity and speed for the common person combined with the clarity of the internet showing exactly how much we are under the thumb of the ruling classes.
In short, no democracy does not work.