Is this sentence is good argument in favour of democracy? Why?
People feel free and equal in a democracy
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yes , it's a nice one but it could be better as " Democracy ensures that everyone feels free and safe ".
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Democracies are more prosperous than others is not a good argument in favour of democracy as there are many countries such as Sri Lanka, India which opted for democracy but not prosperous where other countries such as China or Saudi Arabia which have communist and monarchy rule respectively are more prosperous. The prosperity of any country depends on the correct policies of government. It also depends on the availability of natural resources not with the form of government. Democracy cannot guarantee prosperity.
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