I am interested in mathematical systems where first order induction (IND) fails. One example is ring theory + $\forall x(Sx=x+1)$. Non-commutative rings are models of this theory. Induction proves $\forall x\forall y(xy=yx)$ which is false in these models.
Consider the theory $ZF + IND + 0=\{\} + \forall x(S(x)=x \bigcup \{x\})$.
Let $P(x) = Not(0 \in x) \lor \exists y(y \in x \land Not(S(y) \in x)$.
$P(0)$ is true because $0$ is not an element of $0$. $\forall x(P(x) \rightarrow P(S(x)))$ is also true. Notice $P(\omega ) \rightarrow P(S(\omega ))$ is true because $P(\omega )$ is false.
$\forall x(Not(0 \in x) \lor \exists y(y \in x \land Not(S(y) \in x)$ is the negation of the Axiom of Infinity as given by Wikipedia. Does this prove ZF+IND is inconsistent? If so, is this well known?