Well, Shrugging McCommie here sees dwarven society as highly suitable for communist communities. High working morale, low luxury requirements, very flat social hierarchies (if any), egalitarian and progress-oriented culture. Modest standards of living, but a lot of enthusiasm for SCIENCE! Also very accepting of economic control.
An especially large bonus for dwarven commie-ness goes to their ability to build computers. Alright, more like simple calculators at the moment, but who knows? Maybe the dwarves will invent usable computers. With those, a communist society is even allowed to grow to greater numbers, as opposed to the small, almost tribal communities we're used to.
Given sufficient computing power, communist dwarven society can organise its economy with optimal efficiency AND controllability, while simultaneously easing the troubles of population management.
The only question, to me, is this: Can the player truly be an enlightened dictator, and lead the dwarves into a golden age of technology? Or would it be better for the dwarves to remain in their tribal state, unbothered by the hazards of high technology and psychotic overlords?
Well, they'd have to get rid of their nobles in the second case.
Communism, dwarven and real-world, works either in its rudimentary form (which is to say: for prehistoric people), or in an utopian one (which would be in the future, and later rather than soon). Or MAYBE as a parallel social/economic structure, in coexistence with free markets (as opposed to superimposed in hybrid forms such as "social market economy"). And, as all such things do, it requires either enlightened leadership, or some form of non-populist democracy...however that may work.
For dwarves, it's a tough world. Psychotic nobles and a maniac player.
And for real...what would you prefer? A potentially benevolent ruler who can push for progress, but might turn out to be crazy? Or the same eternal stew of corrupt politicians and idiot voters that makes the modern world such a mess? Player or nobles?
...
I'm going to sleep. Feels like I'm brabbling too much.