During World War 2 the Roosevelt administration worked with the Mafia such as in the US invasion of Sicily. In contrast the government of Mussolini fought organised crime tooth and nail and cracked down on them.
https://forum.codoh.com/viewtopic.php?f=20&t=8177
So what would have happened in the United States after an Axis victory - would they have eliminated organised crime as well ?
Well, the show somewhat answers that at least for the Pacific States -- the Yakuza have moved in and we can infer that they probably absorbed/displaced a lot of the local organized crime structures in Japanese-controlled territory. In the Reich, organized crime almost certainly still exists (after all, organized crime syndicates continued to exist in Germany itself during the Nazi regime), but I suspect that their influence would be reduced compared to what it was historically by a combination of greater Nazi ruthlessness and lack of connections with the regime.
shareYou can make an argument that the Government is an organized crime syndicate.
But since the Yakuza is alive and well in the Japanese controlled zones, they've likely expanded into the Nazi controlled zones as well.
It`s far easier to start a war than to end one.
I know very little about Mussolini's Italy, but here in Germany, organized crime was alive and well during the Nazi era. If anything, the black market and criminal underground grew because entire ethnic demographics and sexual minorities suddenly found themselves on the wrong the side of the law.
As a result, there was a drastically increased demand for fake identification, and many persecuted people used fences to sell family heirlooms in order to raise money to leave the country.
But there was also an uptick in criminal violence in some areas, such as a series of 157 robberies with two murders in Berlin between 1934 and 1937. This goes to show that harsher punishment doesn't deter criminals. We can still see proof of this today in Middle Eastern nations that punish theft with amputation. If anything, they have more crime than wealthy Western nations.
Aside from that, there is a drastic measures approach and a smart approach to fighting organized crime. Black markets exist because of demand and supply. Fill the demand within a legal and well-regulated framework, and the illegal supply side goes away. This approach works for anything from drugs to prostitution. Poverty and lack of legal employment is another factor. Nothing reduces crime more effectively than economic growth and public wealth.