I'm sure that's a gross exaggeration, as getting anywhere near that amount of money saved up would automatically disqualify you for just about every benefit (including disability) that I can think of.
Personally, when I go to the housing projects to do my job, I may see people with poor spending habits (most being mentally ill), but nothing I would go "wow, it must be nice to live like this". - and you can get some really nice clothes or kicks at Salvation Army or Goodwill or donations from churches that are either new or like new with quality brand names for either cheap or free.
I would say from personal experience, most folks living in these areas where they would be eligible for subsidized housing projects, section 8, or a HARP voucher are *generally* living in a combined household making less than $1000 a month, or a single person making $710, with a maximum of $189 in food benefits - but if you are making that $1000, you won't be seeing food stamps unless you have other mouths to feed.
I've seen some people living on as low as $249 a month, with subsidized housing the only way they could keep off the street.
To me it seems like many people have a gross exaggeration of what the poor in America are really like. Oh I'm sure there's a few who have learned to scam the system, but if I do see it, it's not in any great number that people seem to think.