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Dwarves are only productive when they're drunk, and while they work for less in money it costs much more to keep them "productive." Also it's true, dwarves are much better at digging and producing quality metalwork; but gnomes are more intelligently inclined, thus will produce a better planned and thought-out system.
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Ah yes, fair point; fair point. Also I do have to say dwarves do tend be more difficult to negotiate with when comes to labor talks with the unions.