It's fraud and it's terrible but.. Another way of looking at this is that a lot of that $200B was likely put back into the economy. Would the government claw that back, for example returning the fancy car and demanding the cash back?
And put into relatively unproductive sectors like luxury goods. And taken from future American taxpayers, too. A truly collosal waste of limited resources.
If the ppp was feasable, the government would have reserved money for solving these side-effects of their proposal.
The broken window fallacy is about destroying value to create work. The point is that the result is a net negative for society.
This is a case of the government issuing debt to push money into the economy and keeping businesses afloat. Some of those applicants may have been ineligible fraudsters, but their spending those funds still results in that cash circulating in the economy.
Is that as beneficial as keeping a business afloat? No. But there's no reason to believe the result is a net negative.
oof is that the bar we want to set? spend it and you're fine