What phrase in the preamble best demonstrates the principle of democracy in making and running government?

The phrase in the Preamble that best demonstrates the principle of democracy in making and running government is "We the People".

Explanation:

The phrase "We the People", inserted at the beginning of the Preamble of the Constitution of the United States, is a declaration of principles of the constitutional text. This phrase denotes the power that the people have as the main legislator within the social contract imposed in the Constitution, by which they resign rights to the government in order to establish a democracy that governs them in a peaceful and legitimate way. That is, this phrase establishes that the political power that emanates from the Constitution belongs to and comes from the people, which is therefore the one that is empowered to democratically elect its representatives and actively participate in the decision-making process through the different mechanisms that the Constitution establishes.

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