Ah, there's a thread like this just a few days ago. And there was one a month or two ago.
What I want to add: Things are never as simple as people want to believe.
Some earlier posters brought up the issue of corporate governance. I recall some time around 2008 time frame if memory serves, Bogle was at a conference of money managers, and he brought up the issue of corporate governance, and that money managers should use the voting rights of the shares they hold to curb corporate shenanigans, abuses of power by CEOs and their often ridiculous compensations. Some money managers commented that why they should bother. If they are active investors, they will just sell the bad company. If they are indexing, they just let the matter runs its course as some others do the dirty work. Bogle tried to get them to be more interested, saying that they should be the "invisible hand" in Adam Smith model to force changes for the better.
I tried to search for that article, but have not found it. Instead, I found an interview with Bogle in 2010 with Morningstar on the same topic. Here's an excerpt.
Interviewer:"... if indexing continues to gain traction as it has, does that sort of run at odds with the idea of governance and if the corporation knows that the passive investor doesn't have that ultimate weapon of walking away, can it just really ignore the index fund's wishes?"
Bogle replied that an index investor cannot just sell, and he has more reasons to get involved with corporate governance. He then admitted that index investors in reality just did not care.
Bogle: I have to tell you this, which is very disappointing, someone – I think it was a reasonable survey – took a look at all mutual fund managers to see how, what kind of scores they got in terms of activism in governance, and right at the bottom of the list were the three large index fund firms, and that would be Vanguard, that would be State Street and that would be BlackRock.