All along in human history, invention of tools increased productivity per worker. In the middle ages almost everyone but the landlord was farmer. Between 1900 and 2000, employment in agriculture decreased further from 40% to 2%. Employment in industry decreased from 24% in 1950 to 8 % now and will decrease further. Mechanization, process improvements and automation allow us to do more in less time with less people. Productivity increases did not create unemployment because the released manpower became available to build bigger houses, make new products, provide better education and healthcare, offer more entertainment and tourism. In short. productivity increases led to more wealth and leisure. This seems to be changing. Workloads increase and income rises only for the top 1%. How is that possible? Concentration of wealth at the top does not explain that most people work harder and earn less. It makes no difference for the economy if workers build yachts for the 1% or houses for the 99 %.
Three problems cannot be solved by capitalism.
Market forces do not foster transition to more services and better infrastructure. Competition pushes some out of the workforce and increases the burden for those who work.
Capitalism is good at exploiting resources, but not good at distributing resources equitably. A moral society can not be built on unbridled self-interest. Moral principles evolve; 150 years ago, slavery became indecent. It's time to declare an income disparity of 1 to 400 indecent. The resources to satisfy everybody's basic needs (food and lodging besides air and water ) are available. Laws and progressive taxation are required to achieve a morally acceptable distribution.
Economic theories that focus on growth are obsolete because we are now confronted with problems that require government intervention: technological progress decreases demand for labor, inequality, monopolies of digital services, management of care, saving limited resources.
A radical political shift is required but capitalism is hard to overcome. Wealth begets wealth, power begets power. Socialism rarely wins in democracies. “Me first” wins elections.