There are several types of capitalism depending on the policy adopted.
UK Post war (1945) economics was about the wellbeing of the nation as a whole right up until 1979. The country was bankrupt from the war and the only way to recover was by raising the living conditions of the masses.

We are currently in the death throws of the trickle down nonsense espoused by Ayn Rand and Milton Friedman Reagonomics and Thatcherism. A particularly vicious form of economics where greed has been encouraged and glorified.

Labour swapped for mechanisation and the subsequent automation of mechanical methods of production replacing labour entirely. As you pointed out this is a dead end.
No wages = no buyers for the most part.

There are many countries where inequality of the above nature exists. They tend towards higher rates of violence and corruption.

Compare Canada with the USA and we can see both economic options simultaneously.

Thanks for the prompt. It spurred me to comment 👍

Edit: typo