So there's a few different approaches that have been tried here. There's where people who can make food make enough for everyone and no money changes hands; that works in Valinor and works in places under martial law and could maybe be made to work under comparable social pressure elsewhere but that's a lot of social pressure and - I shouldn't, and don't know if I could.
There's the approach where people all get money and can use it to buy food, which raises the question of where you get the money -- you can try to just make enough money personally off the things you invent to fund everything the whole city needs, but if you offer this -- particularly if you offer it to Dwarves and humans -- you get lots of them and a situation that's very dependent on your continuing to have the income to fund the whole enterprise, and destitution if you ever run out.
There's the approach where you pressure or require all the rich people to help you, but the Dwarves won't if they think you're doing something harmful and distortionary and there are few enough rich Elves you run into the problem with the last thing and besides I don't like having laws that aren't the same for Dwarves and Elves.
And the Dwarf argument here, as best I understand it, is that there's also the option where you do none of those things. And remarkably, if food is plentiful enough and if you keep working on ways to produce it with less effort, everyone still gets fed, just through their own efforts and those of their families and through the thing where other people can make money by providing them with food. And unlike the other approaches, this one isn't an institution, I'm not deciding who qualifies and how much they get and whether they're cheating and who is supposed to help me pay for it and who gets cut off first if it starts to cost too much.
And some people get hungry. And it'd be unconscionable, surely, to let some people get hungry just because you don't want the hassle of one of the first three solutions but what Dwarves would say is that 'hassle' is the wrong measure of the thing wrong with the first three solutions. I realize it's awfully convenient for me to believe them.