Yes, that is what is happening. However, what you are talking about has nothing whatsoever to do with Capitalism.
Ever increasing numbers of superfluous people exist because somewhere deep down in our DNA is the urge to procreate. It is the reason that 7.7 billlion humans exist on this already overcrowded planet, and the reason that the population still grows. It's not an easy concept to understand, and the complexity of the system is truly amazing. Quoted from Wikipedia:
DNA is made up of molecules called nucleotides. Each nucleotide contains a phosphate group, a sugar group and a nitrogen base. The four types of nitrogen bases are adenine (A), thymine (T), guanine (G) and cytosine (C). The order of these bases is what determines DNA's instructions, or genetic code.
Genetic information is carried in the linear sequence of nucleotides in DNA. Each molecule of DNA is a double helix formed from two complementary strands of nucleotides held together by hydrogen bonds between G-C and A-T base pairs. The haploid human genome (23 chromosomes) is estimated to be about 3.2 billion bases long and to contain 20,000–25,000 distinct protein-coding genes.
Our appearance, our body chemistry, and our minds we owe to the process we call "evolution". Evolution is the net result of millions of years of cumulative mutations to the 3.2 billion or so base pairs that comprise the human genome. Every once in a while, a stray cosmic ray, a highly energetic particle, or a gamma ray from deep in the Earth's core essentially breaks one of the hydrogen bonds in a base pair, introducing a new ordering, a slightly different sequence of nucleotides. Almost all such changes are harmful and make the human less able to survive. A very few are beneficial and get passed to the next generation of humans. At this level, the most general definition of "Life" is a system of replicating the nucleotide chains in cellular mitosis - each cell has a complete copy of the DNA base pairs following fission/replication.
Pretty much all animals reproduce without bounds until they fill the ecological niche they are in. In the case of human beings, our intelligence has enabled us to enlarge that niche from a few hundred thousand cave dwelling primates to 7.7 billion individuals, each feeling the necessity to respond to that reproductive urge. We use our intelligence (another product of evolution) and we exploited fossil fuel energy to expand our ecological niche to include every continent, virtually every inhabitable island, the ocean floors, and even outer space.
I'm not saying that this reproductive urge cannot be repressed - it obviously can, by an extremely strong-willed individual. Millions of people take vows of chastity and most never reproduce after taking such a vow. Then there are technological means of preventing conception, created by our science of medicine. Most people still reproduce, even with these resources - the knowledge that human reproduction is killing the planet, the will power to voluntarily not reproduce, and contraceptives that allow sex while preventing reproduction.
Note however, that we don't possess the means to both educate and provide the means of contraception to 7.7 billion humans. Most of these people are just getting by as-is, they think only of their next meal and a warm place to sleep.
You can scapegoat Capitalism all you want, and you'll always be wrong. We are talking about a reproductive urge that probably got created when the highest form of life on Earth was a multi-celled plankton in a primordial sea, not even worthy of the term "animal".
Capitalism has nothing whatsoever to do with this basic reproductive urge. It is merely the most efficient economic system we use, the one that fits millions of years of evolution the best, and it is the optimal way to fill all the available space on the planet with humans plus the animal and plant food species we crave to consume, using cheap fossil energy.
The nature of human beings is the root of all our problems. The
"overshoot predator" was what Ibon dubbed it. With apologies to James Cameron:
Listen, and understand. That overshoot predator is out there. It can't be bargained with. It can't be reasoned with. It doesn't feel pity, or remorse, or fear. And it absolutely will not stop, ever, until you are dead.
...and all of your scapegoating of Capitalsm is just wasted words as we enter our death spiral, as we are flushed down the tubes from the planet we despoiled.