Even though it is completely legal for someone to smoke cigarettes, there is a massive black market associated with tobacco that is run by organized crime because "Legalize and Tax-it" never works out in reality like it does in theory. I'm not saying that all drugs should remain illegal, but you can't eliminate all problems associated with drugs simply by legalizing them. The same is true of prostitution as legalization is a benefit to the prostitutes that become licensed, and further marginalizes the prostitutes that can not legally operate in the system (because they're underage, an illegal immigrant, or have a STD).
The first step to solving this problem is for the United States and Mexico to really co-operate to close the boarder and "starve" the cartels. This will never happen because a large portion of politicians in the USA foolishly believe having a porous border is some how compassionate to the illegal immigrants who are soon exploited, and the Mexican government doesn't want this to happen because if their least educated and poorest citizens could no longer flood into the United States they would have to address the problems with how their country works
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