I think my arguments are pretty solid, but I could always use more.
First, well done. That was impressive.
Now let's see - there are two ways to look at this. The first is from an economics/liberty viewpoint, and you expressed that pretty well. However, she already understands that argument and to a certain extent agrees with it. The more you push it won't help, you're practically preaching to the choir.
Her concern is more moral/social/educational, and it's valid. If liberty is one side of the coin, responsibility is the other. What we have now with the welfare state is liberty without responsibility, and building that kind of "culture of liberty" takes time, perhaps a generation or more.
If you give those people the liberty without having them understand that it comes with a severe responsibility, you'll have turned a significant sector of society into bums.
I don't have an answer for this, I'm just shedding light on it. In my mind it's an educational/cultural problem, possibly with an educational/cultural solution.
Anyway, well done. You did well.
Iyad