Money that a business spends on salary, or on other products and services, continues to circulate in the economy; either the employees then spend a large portion of it on housing, food, etc, or the service providers use it to pay their employees, pay for their own services, etc.

Some profit is later spent on other things, but most of it goes is comparatively unproductive in the broader economy.

This is one reason that worker co-ops and employee profit sharing are so good for the economy; when profit is shared among workers, that profit is more likely to go back into the economy and circulate among other businesses and workers.