9/5/19 Race to the Bottom

A Race to the Bottom occurs when parties compete for a desired result by making increasingly larger concessions. Although some parties may temporarily out-compete others, the concessions lead to adverse consequences that may go unnoticed until it is too late to change course. Some observers claim that a race to the bottom results when governments compete for business by lowering labor standards or corporate taxes.

The EPA

[U.S. Environmental Protection Agency] insists it needs oversight authority to prevent a ‘race to the bottom,’ where jurisdictions compete with each other to lower environmental standards to attract new industries and keep existing businesses within their borders.