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In a world without Extraordinary Powers, everyone is "equal." A greater population becomes an advantage. So no matter what, the upper classes still have to consider the feelings of those at the bottom.
But in a world with Extraordinary Powers, where strength is everything, and an Awakener can fight against thousands or even tens of thousands alone, the gap between people is greater than that between people and animals. Numbers become irrelevant, and no one cares about the lives of those at the lower levels anymore.
Therefore, when the farce in the slums got so big, not a single official came to intervene or stop it.
After all, this was just the poorest area of a low-level city in the most remote part of the Federation...
To some extent, these slum dwellers weren't even considered "people," because they lived in a gray area, not even registered as citizens.