I think I see the problem: You are not talking about capitalism but about controlled market economics. Managed markets are very efficient for limited resource commodities and luxury goods. The key word is managed. Unmanaged markets become monopolies and thus produce oligarchies. That is inherent in the system just as growth is an inherent requirement. Remove growth and monopolies or cartels are the result. Accelerate growth and monopolies or cartels result. But we must control or remove growth from all processes that exploit nonrenewable resources. This includes growth that produces increased carbon or other pollutants.
If we succeed in doing this and are able to create an economy based fully on renewable energy and full recycling we can begin to allow growth at some future point. But at that point there will no longer be scarcity requiring market based pricing for all basic goods and services and and the value system will have moved completely from material goods to intellectual property. We are beginning to see that happen now in the most open and diverse societies with cryptocurrencies on blockchain as prototype, abstract value systems representing ideas.