race to the bottom

Race to the bottom describes a causal chain in which competing entities, such as governments, regulatory bodies, or corporations, seek advantage by progressively lowering standards, regulations, or costs, often resulting in diminished social, environmental, or economic welfare.

In legal and policy contexts, the term commonly refers to jurisdictional competition, where states or nations relax labor, tax, or environmental regulations to attract businesses or investment. While such competition may produce short-term economic benefits, it often leads to long-term adverse effects, including weakened worker protections, environmental degradation, and reduced public revenue.