> As far as that one rich individual is concerned, their debt to the workers stops when he gives them the money

Only if it was the employer that originally extended the debt and it is the worker repaying the debt with their labor. Otherwise the employer still has a debt outstanding. The IOUs are distributed, so, practically speaking, that debt may be to another entity (e.g. a bank), but it really makes no difference how many other people get involved. No matter how you slice it, the math is all the same.