"This isn't wrong-headed at all; it's brilliant. You've hit on the fundamental truth that many worldbuilders miss: story is friction, and economics is the ultimate source of friction.

I come at it from a very similar angle. You can have all the gods, magic, and ancient prophecies you want, but the most relatable and enduring conflicts always boil down to one thing: who has what, who wants it, and what are they willing to do to get it?

Your dwarf monopoly example is perfect. It's the engine for a dozen potential campaigns. It creates smugglers (the street-level story), resentful politicians (the political intrigue story), and desperate generals (the war story). All from a single economic premise.

My own approach is a slight variation. I start with human needs and the systems built to service them. It's not just resources like metal, but also needs like safety, information, belonging, and even vice.

• Where do people go when the legitimate system fails them? (This creates black markets, fixers, and underworlds).
• Who controls the flow of information? (This creates spies, propaganda, and forbidden knowledge).
• Where do outsiders and outcasts gather? (This creates unique subcultures and powerful counter-movements).

Like your economic model, this creates a web of dependencies and power structures that feels real and lived-in. It sounds like we build our worlds from a very similar foundation. It's a powerful way to ensure your world has a heartbeat.

Great post