Yes, perhaps I should have lurked a bit more before asking. I appreciate your responding to my question so thoroughly despite that fact.
Well, that is at least uncomfortable enough where it might work in most places, and most people wouldn't want to live like that, granted. However, to give you an idea of what I'm on about, a person can get a somewhat inexpensive sailboat (https://ancillary-proxy.atarimworker.io?url=https%3A%2F%2Fwww.sailboatlistings.com%2Fview%2F84615) and make use of a public mooring for free in places as wonderful as San Diego harbor. You can either carry water in on a dingy/kayak or distill it onboard with propane and some equipment. Fish are obviously available in this case, but a license is about 50$ for a year. There are ways to rig the boat to make life easier and cheaper such as setting the septic system to allow for illegal dumping. Solar panels and free wifi can bring entertainment. The rest you can use for food and little else, but I worry this life would appeal to some. Myself, I couldn't be without a dram of Islay whiskey from time to time, but for those with a less demanding palate I'm sure there are alternatives.
I'm sure there are other ways to make improper use of such a benefit. I've heard of people working in other countries while collecting benefits here, and I'm sure that sort of thing would go on. I guess success would really depend on how well the government can find ways to discourage people from abusing the system. Thank you again for taking the time to lay things out for me.