I can testify that is not true. It really depends on what you are working, I have been payed a pretty good sum of money while working there, as well as my Thai buddies - pay was on the level you would expect anywhere in the world for that kind of job. And I have witnessed several foreigners (farangs) that were payed significantly more than their thai counterparts.
Being Thai myself, my general observation is that westerners (farangs) are always paid more than their thai counterparts doing the same job. This has always rubbed me the wrong way. It's like reverse racism almost.
Also although the cost of living CAN be low, if you wanted to live cheaply and save money, you'd have to live like a middle class Thai person. That means no Starbucks (who the heck pays 80 Baht for coffee when you can get REAL thai iced coffee for 5 on the street). Even what we know as fast foods are somewhat middle/upper middle class.
The foreigners I know living in Thailand seem to live a pretty upper class lifestyle here in Thailand because their dollar goes a long way so I'm not sure how much they are saving. Then again, they're not hackers.
Even normal things that middle class westerners are used to could be considered luxury for the middle class Thai. Cable for example is pretty expensive compared to the cost of food and living and so is internet. Travel in the city can be dirt cheap if you stick to public transporation.
So again, you can stretch the dollar if you are willing to be fruga. Then again you can do the same if you choose to live in the states.
Starbucks has some of the most disgusting coffee I've ever tasted in my life, if you can call that coffee at all. I have noticed one thing that stood out amongst thais that were payed on pair with farangs, they all have mastered english more or less they can communicate with ease, you probably know that there are not that many people in thailand that have a really good grasp of english (English is not my first language also).
Here is a good article on trying to live on 30k a month. It is a pretty frugal lifestyle actually. Lots of toast for breakfast, not a lot of ordering Au Bon Pain.
