I don't like this formulation. Widespread print literacy, which happened to take hold in Europe first, lead to both democracy and increased psychological individuation. Both of these latter things are indispensable treasures, two of the greatest achievements in human history.
Capitalism did not invent identity. It exploits and distorts identity, via marketing. If we want to be taken seriously by lots of people, we must stop being so damned imprecise and hyperbolic in this area, IMHO.