When the legislature proposes or passes a law then refers it to the people for approval or reject the legislature

No, if a law is approved by the legislature, then it goes to the president. He then either passes or vetoes the law. If it's vetoed then it goes back to congress and voted on. If it gets two-thirds of the votes, then they can override the president's veto. 

It can provide a social code to protect each citizen's future economical earnings. and then obviously defending the country from invading countries.