It is an explorary analysis of the role that referendums play on the operations of democracies and the extent to which they affect political systems and party systems. Based on the examples of American and European referendums, it is found that the effect of referendums on party systems is very limited. The empirical data analysis of World Value Survey also suggests that people in Switzerland show strong confidence on their political system but not on their party systems, and that Americans who have only local-level referendums have moderate confidence on their political and party systems. In Taiwan, however, people trust parties instead of the government, which implies that the referendum may turn to be a new mechanism that urges the government to be more responsive.