This is China, and things are different. There are millions of people living in poor villages making a meagre living from farming. The adventurous people go to the big towns and find jobs, if they are lucky at a well paying place like Foxconn. Then they work, doing as much overtime as they can, spend as little money as they can, and return home as a rich person (rich compared to the other people in their poor village). They most definitely don't go "back out on the street" because they never lived "in the street".
That's why workers at Foxconn live in dorms - it's not because they can't afford living in a decent home, it is because (a) there are no decent homes for 100,000 new employees there, and (b) these 100,000 employees don't intend to stay there, they intend to return home with as much savings as possible.
Salaries in China are lower than in the USA. Cost of living in China is also a lot lower than in the USA. Lower salaries mean that school teachers make less, so putting children into schools is cheaper. Hairdressers make less money, so getting a haircut costs a lot less, and so on and so on. Everything is a lot cheaper. And Foxconn has been raising salaries massively in the last years; someone working at Foxconn may get less money than minimum wage in the USA, but can either afford a massively better life style, or save tons of money while they work at Foxconn.
By the way, you are wrong. China has minimum wages, so your whole blustering falls apart at that point. The USA on the other hand apparently don't teach kids at school how to use a search engine.