Question

What is the race to the bottom scenario?

Answer 1

A race to the bottom represents an unbalanced economic condition where there is a surplus of labor relative to work.

When the amount of work is less than the available workers, each worker will reduce their wages willing until they approach the poverty level or less.
In the end the purchaser of labor makes all the profit and all the workers starve.
It is simple economics because each worker is forced to underbid the other because the consequences of losing the bid for work means no income.
Over time the wages just fall further after each round of wage completion since each round results in lower wages.

Simple bullet proof economics, the downside of free market capitalism because all the wealth goes to the business owners. The workers effectively make nothing, maybe a poverty level existence, maybe less