> I hate to ask, but can you dumb this down? Most actual examples are less blatant, but let's say our welfare system consists of a 12'000$ welfare for anyone w

> I hate to ask, but can you dumb this down? Most actual examples are less blatant, but let's say our welfare system consists of a 12'000$ welfare for anyone who makes less than 12'000$ in income. If your job pays 11'000$, your take-home pay is 11+12 = 23'000$. If you do very well and get a 2000$ raise, your income is now 13'000$, so you don't get the welfare, and your take-home pay is now 13'000$, meaning you lost 23-13 = 10'000$ of effective income by getting a raise.