Because government in a free society is based on law rather than on wishes of governing individuals, there are no "rulers" in the ordinary sense. The term "democracy," deriving from demo- (people) + -cracy (rule) implies rule by the wishes of the "people," usually interpreted as majority rule. Consequently, a liberal government is not, properly speaking, a democracy, although it may use certain mechanisms of majority vote. As has already been noted, liberals, including America's founding fathers, have traditionally held little or no allegiance to the notion of democracy (cf. p. 5.2:28, including "Details" box). A government based on objective law rather than subjective desires of a ruling class or ruling individuals cannot, by definition, be a democracy, an autocracy, an aristocracy, or any other kind of "-ocracy."

On the other hand, inasmuch as a liberal government arises from an implied social contract among all persons in society and is instituted to serve their common interest of securing freedom, it can properly described as a "thing of the people," or (in Latin) a res publica—whence the word "republic." More specifically, since its powers are defined and limited by a constitution, a government such as that intended by America's founders can be identified as a constitutional republic. (This identification should not be interpreted as an endorsement of either of the two major parties in modern American politics, since most recent representatives of both parties are clearly unaware of government's proper function and shamefully unfamiliar with the liberal principles upon which the nation was founded.)