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Slavery is not implicitly evidence of evil. Read Terry Pratchett's book Small Gods, there is a model of slavery described as a system where a slave is guaranteed more life security than a free citizen - apart from freedom, of course.
I would say that it is similar in the ED - the Empire has slaves, but I ensure the exercise of fundamental rights for them. The federation guarantees everyone basic rights, but everyone has to secure them ...
Empire: Very concerned with personal honor, but practices Roman style indentured servitude (slavery) albeit they have strict regulations regarding slavery, and they go absolutely ballistic over the more brutal, normal forms of slavery.
Federation: Democracy, but it's a corporate democracy run by megacorps.
Alliance: More or less what we have now IRL in the western sociopolitical hemispheres, but since there's so many systems and worlds you're all over the moral spectrum.
The slavery is a bit WTF, but there are places in the federation where regular slavery is legal which is much worse than imperial slavery.
Outside slavery, there is little difference. Both are superpowers looking after their own interests.
Then there is the Alliance, the third superpower, which basically came together when a load of independent systems wanted to come together as a power block to stand up to the Federation and Empire.
Empire - Space Russia*
Alliance - Space European Union - waiting for Lavexit to happen!
* - not really, but trying to keep it contemporary. They are more like Space Rome.
ghorx is right here. slavery in the empires case basically means government worker.
what happens is if you own a business and it goes bankrupt or can afford your payments for your estate... instead of actually going bankrupt and left to fend for your self the empire has a system where you can repay you debt to society. you will never be left to suffer. the empire gives these people a way out through the system.
they are not slaves in terms of whipped and mistreated (like the name makes people assume) in just an imperial way of being the lowest denominator in society.
they are well treated and held in high regard within imperial society.
but illegal slave trade.... all superpowers have that.
Having worked for the DSS in the UK in a previous life, can confirm, its slavery.