Suppose there is some industry whose profit is based on unethical business practices. Eg: A pest control company X, who themselves send pests into people's houses, so as to later earn money from offering services. The business runs great due to weak laws. (I think a realistic analogy would be tech companies and the right to repair problem.)
I am arguing with another person about such a company X, and saying that X is bad for the economy since it will simply deplete the money of the average person. The person I am arguing with says that, if they were to go out of business, there'd be more unemployement and people in economic troubles in total, since there is no way to directly earn money in this country without a job.
While I still think it's bad after hearing their argument, I still feel I can't give a good enough rebuttal to this argument.
Could a counter argument be framed based on pre-exisiting economic principles? Otherwise, if my position is the "more wrong" one, can someone explain why I am wrong?