Living on $7k per year is not only possible, but in some ways better than the typical American lifestyle on $40k per year. Check out this new blog: earlyretirementextreme.com
A really thorough and detailed description of how to do it (in the Bay area!) and the freedom and benefits it creates. Not so much miserly penny-pinching as challenging our assumptions of what we Have To Have. Especially good at ripping the advertisers who enslave us. Great feedback from critics and supporters alike.
Of course, the American economy would implode if these subservisive ideas took hold.