Well, technically allocating them based on whether stock owners can profit in the long term is the most successful strategy civilization has used so far.

It's just that to survive to the long term you have to get through the short and medium term, where a lot of froth and misallocation happens.

(This is not unique to this point in history, BTW - during the Rennaissance-era Age of Exploration and Second Industrial Revolution, there were also massive speculative bubbles, ventures that didn't work out, misallocation of capital, and outright fraudulent schemes. Most of them were swept away in the periodic financial panics. One way of looking at the situation today is that you have governments who are determined to avoid a panic at all costs, but the process of panics & financial crises is what sweeps short-term-oriented people out of the market, so without them they can offload the costs of short-term thinking onto the taxpayers.)