The flaw in the argument is simply that it assumes E(X/Y) > 1 implies that E(X) > E(Y).

I didn’t understand this sentence very well at first, because the inequality on the right is two steps removed from the one on the left. I find this version clearer:

The flaw in the argument is simply that it assumes E(X/Y) > 1 implies that E(X) / E(Y) > 1. (If E(X) / E(Y) > 1, that would imply that E(X) > E(Y).)