(2) It's likely that many crimes are caused by the black market for drugs; the black market for drugs can be suppressed by legalizing them. It's also likely that many crimes are caused by drugs; these crimes can't be suppressed by legalizing, and in fact may be exacerbated by them. Drug dependency is devastating to economic well-being and to family systems and both those failures also give rise to criminality.
I'm pro-legalization, and if you read his blog Devin seems to be too, but if legalizing is a pipe-dream solution to the "incarceration problem", then pointing wildly to it during discussions of the incarceration problem does everyone a disservice.
However, the idea behind legalization is that it would reduce the incentive to commit other crimes, and that in the long-term, fewer people would be incarcerated, and so the incarceration rates would drop over time.
I agree though that it is both a pipe-dream (unlike alcohol prohibition, drug prohibition is pretty popular) and a "magic bullet" (in that it sounds too good to be true, and thus probably is).
There are many other causes of our high incarceration rates, but legalization is an important step in the right direction (in recognizing that we have created the wrong legal incentives).
My blog post on the topic is here: http://intellectual-detox.com/the-case-for-legalizing-drugs/
That said, I think legalization is much less of a pipe dream than any of the solutions I'm proposing. Which is unfortunate, because I don't think legalization alone will do much of anything about crime, I think most of the major cities need a period of fairly draconian and strict law enforcement to bring back from essentially a state of civil war back to civilization.
Since we're all pro-legalization, then this is a little funny thing to be arguing about but I have a straight forward counter argument to the above.
There is a certain percentage of people who are straight up ruined by addiction. But they're a) a very small percentage of the population and b) since almost everyone has access to drugs (and at least in some of my social circles consuming drugs is totally normative) almost everyone who can be ruined by addiction already is.
This is bourne out by the experience of Portugal, which has decriminalized all drugs, etc etc yadda yadda.
Intensive addiction to heroin is virtually guaranteed to destroy both your family and your career, leaving you and your dependents with neither an income nor a support system.
The counterpoint offered by phillmv was that just because, on paper, the crime has nothing to do with drugs, doesn't mean that it wasn't motivated by the drug trade.