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Is there any actual evidence that what you're saying is the reason for the difference though? It's incorrect that credit scores are highly correlated with incom
by rory 5y ago
Is there any actual evidence that what you're saying is the reason for the difference though? It's incorrect that credit scores are highly correlated with income [0].
Most accidents are caused by things that are pretty ordinary forms of irresponsibility [1]. A credit score is a (flawed) measure of financial responsibility. That seems like a much more reasonable, although less narratively satisfying, connection.
[0] https://www.federalreserve.gov/econres/notes/feds-notes/are-income-and-credit-scores-highly-correlated-20180813.htm https://www.federalreserve.gov/econres/notes/feds-notes/are-...
We find a low correlation between credit score levels and income, with the correlation coefficient around 0.27 for income levels and 0.29 for log income.
[1] https://www.iii.org/table-archive/21313 https://www.iii.org/table-archive/21313
Driving too fast for conditions or in excess of posted limit or racing 8,746 17.2%
Under the influence of alcohol, drugs, or medication 5,164 10.1
Failure to yield right of way 3,728 7.3
Failure to keep in proper lane 3,381 6.6
Operating vehicle in a careless manner 3,302 6.5
Distracted (phone, talking, eating, object, etc.) 3,008 5.9
- rtlfe 5y ago> Most accidents are caused by things that are pretty ordinary forms of irresponsibility This is a big diversion form the actual point, but it's important. The vast majority of these crashes (the word "accident" is rarely used by news/DOTs/etc anymore) could be prevented by designing streets to control speed and improve visibility. So I'd argue that they're caused by poor design which comes as a result of misplaced societal values. Re the second item in that list of causes, an interesting article came out a couple days ago: https://www.bloomberg.com/news/articles/2022-03-21/make-the-world-safe-for-drunk-drivers https://www.bloomberg.com/news/articles/2022-03-21/make-the-...
- rory 5y agoYes, society can and should do more to encourage people to drive safely, but that doesn't mean it's impossible to do so. The same logic applies to all sorts of things like obesity, smoking, etc.. These things obviously have multiple causes-- some societal, some individual. It's not a binary.
- xondono 5y ago> could be prevented by designing streets to control speed and improve visibility And if you make school tests easier, everyone will get a passing a grade, but that’s not the point. The point here is that responsibility is not an area specific skill, people who are financially responsible, tend to drive responsibly, people who are reckless drivers, tend to be reckless spenders too.
- deleted 5y ago[deleted]
- teej 5y agoThere are road designs that prevent driving while drunk or texting?
- Johnny555 5y agoMaybe not drunk driving, but road design can reduce distracted driving crashes: https://news.cision.com/property-casualty-insurers-association-of-america/r/ohio-state-researchers-find-road-design-changes-can-reduce-distracted-driving-crashes,cm112721 https://news.cision.com/property-casualty-insurers-associati...
- rtlfe 5y agoThere are road designs that significantly reduce the consequences of those actions. Narrow lanes with chicanes prevent driving at high speeds. Concrete barriers prevent cars from swerving into cyclists and pedestrians. Roundabouts eliminate left turn conflicts.
- Johnny555 5y agoWe find a low correlation between credit score levels and income, Interestingly, these two articles claim a correlation: https://bluewatercredit.com/is-there-a-link-between-your-income-and-your-credit-score/ https://bluewatercredit.com/is-there-a-link-between-your-inc... Low income (50% or less of MFI) = 664 median credit score Moderate Income (50% to 79% of MFI) = 716 median credit score Middle Income (80% to 119% of MFI) = 753 median credit score Upper Income (120% of MFI or more) = 775 median credit score This one shows similar numbers: https://www.valuepenguin.com/average-credit-score#income https://www.valuepenguin.com/average-credit-score#income
- rory 5y agoNeither of your links contain an actual correlation measure, or links to actual source data. To even call them "articles" is a stretch, they appear to essentially be ads / link magnets (which as a category have an obvious bias). You have to like, control for things and stuff..
- Johnny555 5y agoI'm not familar with Fed notes, is there an actual published study behind that Fed note? The amount of data and studies out there to correlate income level and credit rating is surprisingly low. The data set used by the Fed seems surprisingly weak, a self-reported survey sent out with credit card offers: We use the Mintel/Comperemedia data (the Mintel data henceforth) that provide a unique combination of credit scores and survey-based income data for the same consumers. The Mintel data set is a monthly proprietary survey of credit card offers, with about 2,500 consumers selected to participate in the survey each month. Participants of the Mintel survey have very similar educational attainments and income to other nationwide representative household surveys, such as the Survey of Consumer Finances. The Mintel sample, however, has a somewhat higher average age and greater share of white consumers.
- rory 5y agoThe link literally is a published study. Not sure if that's supposed to be some kind of gotcha. Fed research generally isn't published in third party journals. And the method you describe isn't weak at all, compared to social sciences research in general. If anything, it's stronger than most could possibly be, since lying on the survey is a crime in this case.