Race to the bottom
Definition 1 of 2
Pro Tip 1/3Negative Outcome
The phrase often implies a negative outcome from intense competition or cost-cutting. 
The airline industry's race to the bottom drastically reduced ticket prices but at the cost of customer service quality.
Pro Tip 2/3Not Literal
Understand it's a metaphor for destructive competition, not an actual race or literal descent. 
Many manufacturers engage in a race to the bottom, compromising environmental standards for profit.
Pro Tip 3/3Economic Context
It's commonly used in economic and political discussions about market regulations. 
The tax incentives have initiated a race to the bottom among states to attract businesses.