Why? Because retail sale is simultaneously the terminal summing point of cost and terminal ending point of the entire economic process where production exits the economy and becomes consumption. So even though the result of the policy would be a large increase in the money supply it isn’t inflationary but in fact is beneficially deflationary. Holy Shit Batman! Its a paradigm change in a single policy!
Rebuttal to: “Yeah, well what about if the merchant raises their prices before and/or after the rebate?” No, in order to qualify for the wildly beneficial and so irresistible rebate aspect of the policy (it doubles the potential demand for all of the merchant’s goods and services) the merchant must promise not to inflate more than 2% per annum and to maintain any previous discounts on goods and services…and if they cheat or don’t keep their word any revenue they may garner from such cheating will be taxed at a rate of at least 100%.
That creates free marketing where it didn’t exist before because there are presently no known and actually enforceable barriers in “free” market theoretics. (for instance greedflation, deception, hostile take overs etc. etc.) The 50% Discount/Rebate at retail sale establishes known and enforceable barriers and so also establishes ethics in economics where before commercial agents could yell Fire! in the theater of the economy and get away with it. And if you prefer a world where the “little thing” known as ethics doesn’t actually exist…you live on a different planet than the rest of us inhabit.