> For example, the Swiss pension system is similar to others in Europe, where the current working population pay taxes almost directly towards pensions of the retired. Since this system will break down if taxes aren't increased like crazy or pensions lowered, politicians have been trying to change the system. But there are too many people soon to be retired or already retired that care less about their country's youth and future than their own pension, so they keep blocking changes. So every democratic system has its tradeoffs...

Other European countries (not all) have similar pension systems that you describe, with same problems, and even though they don't have the Swiss direct democracy, they have been equally unable to change their systems.