race to the bottom
The phrase "race to the bottom" describes harmful competition where standards, regulations, or costs are lowered to attract business or investment, often resulting in negative consequences.
Definition
C1Economics
(technical)A situation where regions or countries compete to lower standards, costs, or regulations to attract business, leading to negative impacts on labor, environment, or quality.
Example
- The race to the bottom in labor standards has resulted in poorer working conditions globally.
- Environmental protections are often sacrificed in a race to the bottom to attract foreign investment.
C1Business
(technical)A competitive dynamic where companies continuously reduce prices, wages, or standards to gain an advantage, often resulting in lower quality or ethical standards.
Example
- In the race to the bottom, companies cut corners on safety to reduce costs.
- The retail industry's race to the bottom has led to unsustainable pricing and poor labor practices.
C1Politics
(technical)A phenomenon where governments compete by deregulating or lowering standards to attract investment, often at the expense of social welfare and public interest.
Example
- Political leaders warned that the tax cuts could trigger a race to the bottom among neighboring states.
- The race to the bottom in regulatory standards has undermined public health protections.
Similar
Terms that have similar or relatively close meanings to "race to the bottom":