youre forgetting about efficiency gains.

the economy can grow a lot faster than natural resources. if you have extremely cheap power (solar and nuclear) you can recycle basically everything, even things that are not economical to recycle today like mixed plastics or e waste. that gives you useful products with low environmental impact. we can go further and capture carbon from the air to make into plastic with a net positive climate impact.

capitalism is a big problem here, but only because it prevents us from moving to a circular economy when extractive is more profitable. infinite growth under socialism is good because without the profit imperative you can always do it in ethical ways even if they start out less efficient.