You’re half way to social credit Mish with a negative sales tax which is just a less efficient way of implementing a retail discount. Of course because depreciation is a large ADDITIONAL cost of production and there is no current means of bridging the macro-economic gap between it and individual incomes except to borrow which unfortunately just adds more systemic costs….the problem will still persist. Unless a universal dividend is implemented which adds neither cost to the individual nor the system. Come on Mish, you can see that. Become an actual social crediter. Why you can even integrate social credit with Austrian economics by making the retail discount 30-40% so that deflation is a fait accompli. Social Credit is NOT socialism after all. It fits seamlessly within profit making systems. After you drop the unworkable and unethical aspects of present economic theories you’re free to integrate only the truths, workabilities and applicabilities of the opposing orthodoxies and come up with a third, more unified and humane whole.

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Ron J:  “After you drop the unworkable and unethical aspects of present economic theories you’re free to integrate only the truths, workabilities and applicabilities of the opposing orthodoxies and come up with a third, more unified and humane whole.”

Human nature never changes. Cycles cannot be eliminated.

Me:  You’re right about cycles, but with those policies in effect the stability of the economy and the investment climate would be so much better than it is now that people would look around and say, “Why didn’t we break up the Banks monopoly on credit and their monopoly on the vehicle for the distribution of money….a long time ago.”

Human nature has an inherent and very powerful capacity to love and care….you just have to get outside of the prison of homo economicus….to see it.