Something to bear in mind when you are being told environmental damage is being caused by the poor or some foreign country.
After all most of us work hard so that we can buy things.
And that choice is basically the exact opposite of what western civilization is heading for, and thanks to the AI boom, it has never been worse at any time in human history, I guess. Which means you are likely surrounded by people who want the opposite of what you want. That will be problematic.
However, this really only would be the proper answer if given by a majority as a community. In a crowd of people who want more, more, more more MORE, you will just drown and die.
But in principle you are right:
No, you do not really need to re-industrialize your country. Instead think about how endless growth in a reality of finite resources is going to play out. California is just fine as it is. Let's think about where Californians will get drinking water from in the near future, instead of thinking about building water-consuming factories.