The EMH applies to financial markets, which revolve around ownership of easily tradeable things. Often those things are bought just so they can be sold later on. A person convinced by your argument would have a difficult time “leveraging up” to arbitrage an inefficient labor market. Though I think the economic consensus might be that labor markets generally are not very efficient, hence the existence of persistent high unemployment (though that may not be an issue in Australia compared to the U.S these days).
Thanks I like your clarification of this. I guess I was using the EMH as a straw-man there in the Q/A but I feel like it’s a common concern for people who think that some invisible hand of the market should prevent this opportunity from existing.
The EMH applies to financial markets, which revolve around ownership of easily tradeable things. Often those things are bought just so they can be sold later on. A person convinced by your argument would have a difficult time “leveraging up” to arbitrage an inefficient labor market. Though I think the economic consensus might be that labor markets generally are not very efficient, hence the existence of persistent high unemployment (though that may not be an issue in Australia compared to the U.S these days).
Thanks I like your clarification of this. I guess I was using the EMH as a straw-man there in the Q/A but I feel like it’s a common concern for people who think that some invisible hand of the market should prevent this opportunity from existing.