I could write a lot about hiring people for below market rates. you can get extremely smart people for that wage; the problem is you can't get people who are both smart and experienced or both smart and educated. At those rates, you are spending significant time training.

That said, if you choose well and you train well, the tradeoffs sometimes can work out quite well for you. People working their first 'real job' are often as dedicated as the founders; they know that if you make it big, even if they don't have equity, their career is made, either with you or with others who have heard of your success.