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Simple English definitions for legal terms

Race to the bottom

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A quick definition of Race to the bottom:

Term: Race to the bottom

Definition: When people or groups try to win by giving up more and more, it can lead to bad things happening. This is called a race to the bottom. Sometimes, governments try to get more businesses by making things easier for them, like letting them pay less taxes or treat their workers worse. But this can hurt the workers and the economy in the long run.

Related terms: Protectionism, Free trade

A more thorough explanation:

Definition: A situation where parties compete with each other to achieve a desired outcome by making bigger and bigger concessions. This can lead to negative consequences that may not be noticed until it is too late to change course. Some people believe that a race to the bottom happens when governments try to attract businesses by lowering labor standards or corporate taxes.

  • Two companies are competing for a contract to build a new bridge. Company A offers to do the job for $10 million, but Company B undercuts them and offers to do it for $9 million. Company A then lowers their price to $8 million, and the bidding war continues until one of the companies wins the contract but has to cut corners to make a profit.
  • A country wants to attract foreign investment, so they lower their corporate tax rate to 5%. Other countries in the region see this and lower their rates to 4%, then 3%, and so on. Eventually, the tax rates are so low that the government can't afford to provide basic services like healthcare and education.

In both of these examples, the parties involved are competing with each other to achieve a desired outcome. However, in doing so, they are making bigger and bigger concessions that can have negative consequences. In the first example, the winning company may have to cut corners to make a profit, which could lead to a poorly built bridge. In the second example, the government may not be able to provide basic services because they have lowered their tax rates too much.

Race statute | Race-notice statute

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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