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Viliam comments on Politics: an undervalued opportunity to change the world? - Less Wrong
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There is probably a similar quote from Plato about slavery.
The point of the Churchill quote wasn't to proclaim democracy the best evah! The point was to hint at the danger of the nirvana fallacy -- you need to have some method of organising society, so relative metrics are more important than absolute. You pick the best out of what's available.