The 'solution' is simple, but politically unfeasible. (Ok, if it's unfeasible, it's not a solution.) Legalize several well-tested drugs (cannabis with max. THC, MDMA, ...) where the side effects to public health and safety are acceptable. Outlaw the rest. So strange that alcohol and smoking are legal, while many lesser evils are illegal.
It should tunnel the masses into the legalized produce (they are looking for, and getting, the thrill anyway), while bringing markets back to normal. As a added benifit, normal markets bring less criminal attention and need less government intervention. (For the Europeans: VAT as a bonus.)