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This is true to a certain degree, but the cartel's way out of the bag on this one. They don't just produce/traffic substances, they're firmly entrenched and armed to the teeth. They are not going anywhere, even if you take one of their major cash cows away - they'd just pivot to something else.
Now, getting MDMA and psychedelics into a therapy setting is something I hope happens very soon, ideally long before anything is fully legalized as I imagine that will be a long time.
I know some people in that industry though in Europe. Legalisation is like game over for them. They move on to other countries.
Seriously what do you imagine they will pivot to that will have even a fraction of the income?
Human trafficking, illegal gambling, protection rackets, prostitution, etc. All of those are "markets" they are already involved in.
Sure. Grimy stuff. But nothing makes money like drugs (maybe gambling). Legalisation would begin their slide down. Legalise prostitution and gambling too like they have in Oz. Makes it safer for all and effectively removes the black market.