If you have spotify I highly recommend the entire discussion. Zeihan talks intelligently on a number of topics including the ukraine war, green power, electric vehicles, demographics and the coming collapse of china. Agree or disagree but he has some original takes on all these topics.
So if drugs were illegal cartels wouldn't profit? Is that the argument? The whole drug show has been run by cartels for decades. The video talks about money laundering. Cartels have been laundering money for decades as well. All legal drugs did is give them a potentially additional way - but they would have done it regardless. I call bullshit that legalized drugs (weed) is now suddenly leading to cartels profiting off drugs, because they always have profited off them.
The biggest change to cartels is now they grow weed here. Since it's legal to grow in certain states, they grow it there to lower transport costs and avoid crossing the US/Mexico border to avoid that risk of being caught.