This is called the “welfare cliff.” If you start earning more money, you lose benefits faster than your wages go up, so you end up worse overall. This guarantees certain companies, like Wal Mart, a supply of workers at much lower cost than they would have to pay people in a fair, free market.
via learnliberty.org:
Pretend you are a poor, single parent of two in Chicago, earning $12 an hour, working full time, and determined to do what is best for your family. And suppose your employer, impressed with your work, offers you training for and promotion to a new job paying $15. Should you take the offer?

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