It's unclear whether the slowdown in US/EU real GDP growth is (a) dysfunction of capitalism, due to what you described, or (b) a "cooling" effect as global inequality of nations (as it should) mean-reverts. The good news is that global GDP growth is quite high: about 4% per year and accelerating (faster than exponential, for now). Obviously, there are severe sustainability concerns (such as the need to move away from planet-baking carbon fuels) that must be addressed. But, if we can address those environmental constraints, the global picture is actually pretty positive.

Worth investigation, however, is what happened in the U.S. in the 1920s. We got really good at agriculture, quickly (i.e. over the course of a few decades). We did a bad job of distributing the wealth generated by that. Commodity prices plummeted as the 1920s wore on. By 1925, there was an epidemic of rural poverty, but those were boom times for the urban rich, so it wasn't called a "depression". In 1927, the economy grew volatile and by 1928 large companies were starting to sweat. The "official" start of the Great Depression was Oct. 1929, and by 1933, the U.S. economy had imploded and the stock market was down almost 90% from its highs.

In the late 1920s, prevailing conservative thought was that poverty was a sort of "moral medicine", because the suffering washed away sin. (It was the same backward, moralistic thinking as was behind Prohibition.) The Depression proved that it's a cancer that spreads relentlessly. If the farmers get poor, the factory workers selling to farmers get poor, and those who have money become risk-averse and hoard it (causing asset crashes) and over time almost everyone ends up losing.

What happened to agricultural commodities in the 1920s is happening to nearly all human labor now. And that's pretty terrifying.