Race to the bottom is a phenomenon in which organizations and states engage in a competition to gain a relative edge over their competitors. This is done by implementing measures that lower the standards of acceptable corporate, political, and economic practices, leading to an overall reduction of quality across the market or region. This often involves paying lower wages, lowering taxes, and exploiting weak regulatory frameworks or labor laws. The result is a race to the bottom, with negative consequences felt by both businesses and individuals including increased inequality, decreased wages, and decreased workforce quality.

See also: arms race, catastrophic risk, perverse incentive, supply chain