I wouldn't advocate capitalism as the solution for anything. You only have to look at America to see it's neither fair or working. My previously posted link here
U.S. National Debt Clock : Real Time shows the whole system to be a ponzi scheme the question being "what next" to which there are no good answers. I wouldn't advocate a system where 1 in 5 people survive on food stamps as a suitable or enviable form of governance.
To the topic of this thread though was the issue that MPs are overpaid at 65k. They are not. There should be massive payrises and a working system of pay for performance. If you are in charge of roads then if potholes exceed 10% of roads you get sacked. I don't know what the metrics would be but they should be easy enough to define. If we had no potholes I'd have no problem with the minister for roads earning 200k. Similar could be applied to most government departments. The resulting infrastructure spend would be huge, the upside of which is a restarted economy based on manufacturing and not services. Youth unemployment being probably the biggest challenge of our time would be significantly reduced.
Here they get paid a lot but they are both impressive and accountable. The UK system by contrast of jobs for life, life peers and such is a joke, almost as bad as the north south divide. I think it's time parliament was moved to Manchester or Birmingham in order to fairly distribute the countries resources from the centre of the country.