As companies profit, they reinvest some of that profit into the projects of reducing overhead, becoming more efficient, and advertising.
And since laborers are both free and consumers, companies can’t pay too little to labor because laborers will go elsewhere, buy elsewhere, or both. Competition means they can’t seek too much profit by selling high because consumers will buy from someone else who produces the same goods and services at lower cost. Profit comes from keeping production costs (labor, overhead, inefficiencies, the mechanisms of production, etc.) lower than the returns they get from selling their products. The companies then reinvest the profit from those sales into the great system of production and consumption. This is how it is supposed to work: Companies freely compete with each other to produce goods and services that will be bought by consumers. Capitalism, the Crash, and Christianity Mark Douglas
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