It's an urban legend. There was a Scot Professor, Lord Woodhouselee, Alexander Fraser Tytler who wrote two books: Universal History and Elements of General History, Ancient and Modern. Word search in Universal History has been done, and there's nothing relating to the progression from democracy to dictatorship. You're completely free to go to the National Archives and read both books for yourself, if you have the time.
The sequence listed in the email is:
1. from bondage to spiritual faith;
2. from spiritual faith to great courage;
3. from courage to liberty;
4. from liberty to abundance;
5. from abundance to complacency;
6. from complacency to apathy;
7. from apathy to dependence;
8. from dependence back into bondage"
(And Professor Joseph Olson, also mentioned in the email, has been contacted directly and he had nothing to do with the email or anything therein.)
Snopes has additional information regarding the email.
Whoever made up the sequence of democracy could be wrong. What do you think?
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