Just because the dwarves mine the stuff doesn't mean they will produce superior technology, though it does give them the advantage. What's important is innovation: can the dwarves find a new, better way to use the resources at hand to gain an advantage in something or other over their enemies. The Chinese had gunpowder centuries before Europe, but they were British cannonballs that subdued the Qing Empire.
DnD has painted dwarves to be slow growing, isolationist, traditionalist to the extreme, and devoted to craft-production. That combination will not lead that race to rule over others.
The slow groing factor will ruin them if only because in any war they fight, if they kill 200 goblins or orcs to each dwarf, it's still a loss for the dwarves. The goblins will be back in 10 years just as numerous while dwarven population stagnates.
By being isolationist, they restrict the number of ideas that can pass back and forth, likely even between clans. Some dwarf might have a good idea (I'll make the axe-head elliptical!), but unless there's communication no good will come of it.
Traditionalism can be a virtue, especially if the traditions held produce hard work and espouse virtue. It is not good when it becomes a distrust of everything new, which DnD dwarves are often depicted as. How long has their culture remained where it is? What is another word for staying still? Stagnant?
Craft production has made some of history's finest pieces. Each original paining is an example of craft produciton that cannot be imitated by even the finest reproductive methods; everything else remains a copy. But when the purpose of a thing is not to be appreciated for its aesthetic, but for its effacasy, then craft production is a poor way to go about making things. Historically, the roman swords were so successful because they were
cheap, and so they could arm everyone. But every dwarf I've ever heard of runs around with his beautifully engraved, embossed, thrice gilded axe. At least, any axe he cares about. Perhaps it's a function of not having all that many dwarves around so each axe can have the names of five generations carved on them.
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As their culture is written, the dwarves just won't take over. They'll sit in their mines, they'll beat the tar out of folks who come looking for trouble, and they'll probably supply the surface races with metals and goods for something they need. (Where do they grow the wheat to brew all that beer they talk about?)
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trancejeremy said:
The real question should be, is how do Dwarves smelt all the stuff they mine? You need lots and lots of trees for that. While many hills are covered with them, you never see dwarves do much lumberjacking (though it does explain their affinity for axes).
I believe you can use coal as the burning agent in smelting, which would be convenient since it is also a better input for forging and it's found underground. Like dwarves.
Falkus said:
If humans don't use gold or silver as a currency, then it doesn't matter wheter or not Dwarves can pay in it.
The virtues of gold and sliver are that they:
Are rare, but not too rare.
Are malleable, but hard.
Are of easily identifiable purity.
Are light.
Much more so than any other materials; at least those available in the real world. So it's likely a post-barter pre-fiat-currency economy will quickly make use of silver, and to a lesser extent gold.
But just dumping loads of gold and silver into the surface economy is not necessiarly a recepie for success: Spain did it in Europe in the 16th and 17th centuries and she produced nothing for herself. It inflated the value of gold and silver, beggared the own economy, and she's been trailing the rest of Europe since. While this might not happen to dwarven economies, it is possible.