
Shredder and Tatsu even treat the young people like a family, choosing to overlook small mistakes and character flaws and encourage the youngsters to do whatever they please - all for the purposes of making them loyal members of the Foot and throwing the city into as much chaos as possible. Outside, they're the reason that a massive crime wave has gripped New York, making the city itself chaotic and unsafe.

They can do anything they like there: smoke, drink, gamble, play video games, and anything else. They control an underground Wretched Hive which draws in young delinquents and others who feel disenfranchised by society.
ANARCHO TYRANNY CRACK
After Xizor's killed for trying to assassinate Luke however he lets Vader crack down, killing or imprisoning most of the group's leadership.
ANARCHO TYRANNY FULL
Palpatine even has Prince Xizor, head of the most powerful crime syndicate, Black Sun, being a high member in his court, just under Darth Vader (while surely knowing full well his position), probably because he finds it useful. They're much more focused on fighting the Rebel Alliance because they actually threaten the Empire's power base instead of merely preying on some random citizens. The Imperial Navy is fully capable of quashing any opponent in a head-on fight, but they are apparently content with letting organized crime groups like the Hutts run planets such as Tatooine.

Escape from New York and Escape from L.A.Eventually, they conspire to wipe out everybody living there with a neutron bomb.

District 13: The French government has given up on trying to police the ghettos (banlieues) because of the massively surging crime rates, allowing gangs to run them while leaving the citizens living there in the crossfire.This soon bites him in the ass when Phoenix unfreezes more criminals, then has Cocteau killed. He had explicitly enabled Phoenix to escape and didn't stop him from injuring people or killing them on the way to his target already. Once Phoenix wreaks havoc in the process, he decides this is great as it will instill further fear in his people and permit him to be even more totalitarian so he can shape them into a "utopia". Cocteau initially unfroze supercriminal Simon Phoenix after he'd been brainwashed to kill Edgar Friendly, a resistance leader against his benevolent despotism.
