"Instead, if the money supply is insufficient, we just print more money for the economy."
You state no less than 4 times that money doesn't magically disappear. Actually, there's one way that it can disappear, and it is through "printing money". The government can't just issue currency - the currency needs to be backed. In a fiat system, the currency can be issued as a debt, but that debt accumulates interest from the moment it is issued. That interest represents value that does not exist within the system, and thus there is more debt in the system than there is currency in circulation, resulting in the economy having a negative value. Printing more money when the supply becomes insufficient is therefore counterintuitive, because you are further contributing to the loss of value within the system. That approach might work in a system with some sort of material backing, such as a gold or silver standard system, but it makes absolutely no sense in a fiat system.