You make the same mistake most Americans make when hearing about the pay in foreign countries. Also according to Mexperience the minimum wage is in the vicinity of $4.50 per day.
Here is a report by someone living under those terrible conditions in Mexico.
"I live in a small publito (village) somewhere in central Mexico. I am one of three “Gringos” here and we are followed around like ETs. I’m guess that we are considered different, and many of these villagers have not seen one of us up close.
I have a partially furnished two bedroom casa with a satallite dish on the roof. My rent is $100 US dollars per month for this home. I recently saw a four bedroom for $400 dollars per month. Stay out of the expensive areas and you’ll pay what the locals pay.
That’s true with the food too. I buy my food at the local market and from the mobile vendors that traverse up and down my cobblestone street. Fish and shrimp are cheap. If you just walk up and show your blue eyes, you’ll pay the higher “gringo tax” price. Shrimp started out at $7 per lb, but after networking with the locals who had a cousin, a brother, or maybe married to someone who worked on the fishing boats, I started getting the same shrimp for $1 per lb. The food here is pretty much pesticide free. They can’t afford the chemicals that we use in the States, and as a result, the food probably better for you and it is delicious, having more taste than you can imagine.
I spend in the neighborhood of M$120 pesos per week for my morning and midday meals. That’s US$12 per week, and if you add my evening meal, I’ll spend another $15 bucks. Let's see, US$27 to US$30 per week for my meals isn’t bad. If you wanted a maid to clean or cook for you, they can be had for US$4 per day! Bus fare to and from a nearby larger city is US$24 dollars for the entire MONTH and that’s if you went to that particular town and back every day." (http://www.escapeartist.com/efam30/mexico.html)
"Cost of Living in Mexico
The cost of living ranges are set within the costs for a middle to upper class family lifetsyle, which considers a $1300 to $17400 USD monthly income. Included in the costs are: Housing, Food, Education, Transportation, Clothing, Recreation, Health, Furniture and Appliances, and Personal Use. Monthly rents are taken for the average for each city, and may vary according to market situation. Prices are in USD, based on an exchange rate of 11.5 pesos to the dollar."