Politicians are weird. When it comes to peaceful activity they are going to turn over every single penny When it comes to war they do the exact opposite. The broken window fallacy is therefore not an answer to broken capitalism but rather broken politics.
It's probably because laws accumulate and don't expire. Getting rid of counterproductive laws is an action. Revolution is just an instantaneous loss of power. Maybe we should have a system with a continuous loss of power, the same way we have a money system with a continuous loss of purchasing power to prevent an abrupt loss of purchasing power.
Democracy currency is not novel. The US dollar in notes and digital form and other currencies created by democracies have existed for a long time.