I've got some limited field experience as an electrical helper, but no real classroom experience yet. (saving up for school)
I am of the understanding that the neutral wire carries electricity back to a breaker panel.
I generally wire switches, as instructed, as follows:

However, this doesn't make sense to me because if the switch is in the off position, how does the power return to the breaker panel? I assume it can't be flowing through the neutral because the path to the device is interrupted by the switch, thus the circuit is not complete.
Does it flow, instead, through the ground? I've been told that the ground should never have current unless there is a severe fault, at which point there is a problem that needs fixing.
Isn't the ground the only way the electricity would return to the breaker panel in the above wiring scheme?