Hi Walter, this line of questions is not going to lead to a proof of your position. The S&P index removes failures, so your question fails to address survivor bias. Also, you argue the perfect over the good as a reason for status quo.
Proof, no but strong evidence. Yes, companies fail all the time. Is that due to short term thinking - or simply making too many mistakes? Sure, there are companies that sacrifice long term for short term. Their market caps tank because investors aren't fooled.
But the overall growth in the economy and strong long term growth of much of the S&P 500 is ample evidence that investment is not dominated by short term thinking, and that the S&P 500 is not a massive pump & dump scheme.
