Some of those freelance boards are scary places! I've seen many similar postings, from $0.50 per 800-word article to website owners who act like a writer should be eternally grateful to be getting $5 for a long article.
Unfortunately, the bottom line is that many people are happy to receive this much payment. For people in some countries, $1 per day is enough to live on, and writing several articles each day could mean a $5 daily wage, and their status becoming rich relative to those around them!
I then began to wonder why they weren't setting their sights higher. Sure, some of them don't know there
are places where they can make money, and some of them write such poor English that their work probably couldn't get anything more than $1 for 500 words, but there are also competent writers who could earn so much more on a site like this one with enough hard work and sometimes a little work on their English skills.
Interestingly, I think this is a problem of globalization and culture clash. For us, it seems ridiculous not to want to earn more. After all, why settle for $5 a day when you could be getting $20, $40 or even more and becoming very, very rich? I think this stems in part from our culture. We're told to advance as far as we can, improve ourselves, make as much money as we can, and so on. People from other cultures are used to accepting their lot in life and not striving to make any more once they've found a comfort zone that provides for themselves and their families.
Plus, personal comfort zones come into the mix. I know people who are in awful work situations, but they still refuse to leave because they just aren't comfortable with their ability to get another job and do well there, adapt to a whole new situation, make new work friends and contacts, etc. I'm the opposite -- I don't like staying put too long, unless I can make changes to a situation. It's the entrepreneurial spirit.
It's frustrating, because I find myself wanting and trying to show some of these writers that they can do better, but at the end of the day, we have to just be glad we've found this site and keep striving to improve our situation. Some people will eventually "come to the light" on their own, and others will happily subsist on a few dollars a day.