racetothebottom
Race to the bottom is a phrase used in political economy, public policy, and business to describe competitive dynamics in which actors lower standards, regulations, wages, or taxes to attract or retain economic activity. The term commonly applies to jurisdictions competing for investment or firms competing for customers by reducing labor protections, environmental safeguards, corporate tax rates, or other regulatory burdens.
Causes attributed to such dynamics include globalization, capital mobility, fiscal competition among states, regulatory arbitrage, and
Consequences often discussed include erosion of worker rights, environmental degradation, weakened public revenues, and social inequality.
Responses proposed or implemented to prevent or mitigate a race to the bottom include international agreements,