We the People is derived from "Any freeman," which evolved from "Any baron" in the Magna Carta.  The phrase "We the People" was a departure from other documents under the Articles of Confederation, which always put more emphasis on the States.  The presence of "We the People" at the beginning of the Preamble does not signify that the United States is a democracy, for it is not the people alone that wrote the Constitution, but the States, as well.  The opening phrase, "We the People of the United States" could very well read, "We the free People of these States that are united."  In the end, the opening phrase is a declaratory statement signifying who the authors of the social contract called the United States Constitution truly are.