"So you mean there's a country where murder is legal AND it's peaceful? Bullshit."
"No niggers, either."
"Oh, that explains everything."
You missed the sign at the start of the episode, in this city, EVERYTHING is legal, there are no laws whatsoever, there's also no police, and no prisons, either.
For example, it's legal for you to not pay for your meal, in a city without laws, theft is not a crime, and the prices are more requests than requirements, however, it is also legal for the store owners to take you outside and blackhand you (putting your hands into hot tar, a punishment used for thieves, similar to tarring and feathering, which was used on deserters).
Rape is legal, but you might get hung from a tree or made into a lady for it, everyone is real polite, because merely causing enough offense and being a enough of a disrupting nuisance is considered good cause to end one's life.
It's the wild-west american frontier, especially in the southwest of it, where what we now call "the purge" was on 24/7, frontier justice applies, and as a result things stabilize a lot (and fast), the only trouble comes from outsiders who think that coming round and causing trouble in a land without a justice system is going to end well for them.
People just needed to be reminded that that rule INCLUDED crimes like murder, but was by no means limited to just that restriction (though any other warning is unnecessary, as a legalization of murder is essentially a legalization of everything else via the "Heinlein law", explained so eloquently in the book "starship troopers"), the manga makes it clear, this is a place where there are no crimes, because there are no laws to break, it's also one of the most peaceful and pleasant places to live in, because of "frontier justice" and all that.
Niggers kept breaking the laws, the natural consequences of that followed in each case, things just naturally sorted themselves out, same happened when the jews came in and opened their banks, schools, and theatres in the place, folks round there didn't take too easy when the kikes started with their usury, indoctrination, and subversion, so things sorted themselves out, they never expelled the jews who came to their city, they just relocated them to an "underground residence", if'n y'all catch my insinuations.
Timestamp or it didn't happen.
almost like the society is some sort of self organizing entity intent on survival.
Remove the word "the" between "like" and "Society" and you get the point of the episode. Justice always exists, it's naturally emergent, law merely "civilizes" the process. The issue is that in doing so, it also creates a system where the rulebreaker is able to be protected from the wrath of those they wronged (and their families, and their friends, and their neighbors, and their fellow countrymen), leading to corruption and crime. We consider "mob justice" to be "savage", but here is the most utopian city that we see on the entire show, everywhere else is complete dystopia.
One city on the show has a direct democracy, everything is voted on, and everything CAN be voted on, the vote goes to everyone, even to children, convicts, and outsiders, everything is done according to the ballot. The result is two people who hate each other ending up as the sole residents, how did this happen?
The population realized that since any issue could be brought up to ballot, people could rig future elections by using their vote to get rid of the people most likely to disagree with them, the minority was thus pruned off repeatedly, first it was just by denying them the ability to vote or submit an issue to vote on, then it was by evicting them from the city, imprisoning/enslaving them, or simply killing them.
So this is what happened, repeatedly, and there was a lot of shenanigans as well, such as people being brought in from the outside and tricked into voting a certain way, and of course there was a ton of electoral fraud.
At the end, the only people left were two men who were the sole remaining residents at the opposite end of the city, each owning on side of the city and wanting to claim the other half, they call elections on the issue to get rid of the other one, but it always ends in a draw since sometime into the voting wars, all outsider learned to steer clear of that place, it was simply a horrible place for anyone to visit, let alone live in.
So the main character decides to check it out, and finds that it's occupied by two very crazy people, she solves the issue by giving each of them weapons and telling them to fix their problems without resorting to the ballot, they decide to end things peacefully, since neither felt comfortable with just shooting the bastard across from them, they decide to try and rebuild their city, but on a new foundational ideology.
Hence the war between tweedle-dee and tweedle-dum had come to a conclusion.
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