The UN recently issued a report stating clearly that capitalism is unsustainable.
Your idea rests on ever-increasing production and consumption. Consumption has limits and production is limited by consumption. That is completely aside from the fact that production requires resources, often meaning environmental damage.
The actual problem is not that enough is not produced. More than enough is produced but is disposable or disposed of. Globally, we produce far more than enough food already to feed the world population. The problem is capitalism limiting access to that food. Many thousands of tons of food are discarded in this country on a daily basis.
Nothing is going to stop automation. The push to automation has continued since the Industrial Revolution. Over decades we have seen the automation of telephone operator jobs, auto workers, print setters, proof readers (hard to believe but true), bank tellers, cashiers, billboard painters and posters and on and on. Right now we have the push toward autonomous vehicles, which will eliminate millions of living wage jobs. 3D printing may eventually reach the level that when we want anything at all, we bring up plans online, push a button and wait for a machine to print most objects. Think Star Trek Replicators.
There will be jobs available in production but that will mostly be for those who actively choose to do such work, rather than being forced to do so by circumstantial necessity created by capitalistic greed.
Dignity? Look how most employees are treated by employers, especially corporate employers. People are treated by and large like property. Many people treat others with disrespect. So dignity takes a change at a societal level. Yes, it is an ideology.
This entire article is nothing but capitalist propaganda. You are attempting to wish away the fact that we are changing from a fully production-based economy and way of life to one of service. Mostly service to one another across society. Education, entertainment, counseling.
That means economics will have to adapt to society, rather than society adapting to economics. This will most likely include some form of Universal Basic Income. Without such a concept being implemented, production jobs will continue to disappear and jobs become more scarce as time goes on. The lack of existing jobs will force unemployment ever higher. This is a reality we all must face. As jobs disappear, so do consumers. No consumers, no profits, no production, no jobs. It is a cycle which cannot be denied. Unless UBI is implemented, capitalism itself is doomed.