The cumulative hierarchy is the transfinite recursion
Here is the power set. The class consists of all sets in ZF, by the Axiom of foundation and Axiom schema of replacement.
Two facts about a transitive set drive the transfinite induction. First, : every is a subset of . Second, is a transitive set: if , then , hence , hence .
Starting with , these facts prove the successor step. At a limit ordinal , the union of the earlier increasing transitive sets is transitive: if , some contains in , and transitivity puts there too. The union contains every earlier stage. Thus the induction gives both transitivity and whenever .
Finally , so . The Axiom of foundation gives . This witnesses strictness:
This is the transitivity and strict growth of the cumulative hierarchy.
Fix . Since is a limit ordinal, choose with . Transitivity gives . Every subset therefore belongs to , and consequently
The last inclusion uses , since a finite number of successor steps remains below a limit ordinal. In particular every subset of is also an element of the transitive set .
Take . For any , transitivity ensures that the internal statement agrees with the external one. Hence
Such a exists for every , so satisfies the Axiom of power set. This power-set axiom at limit ranks actually holds for every nonzero limit ordinal; the stated restriction is sufficient.
Every finite ordinal belongs to , so and . However, , whose elements are the hereditarily finite sets.
Suppose were an internal power set of . Internally , and is an available element of the structure. Thus the Axiom of power set would require . But means , which would put , a contradiction. Therefore
This proves power-set failure at the first rank above V omega by an internal obstruction, including the subset itself.

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