What would the extra expenses be if it were to be legal? Say you wanted to legalize Vicodin for recreational use for instance. What would stop a company from selling it at $1.25 a pill when the illegal market is selling it at $5? I think the same would apply to heroin. Drugs on the black market that are also prescription are always dramatically cheaper. Diazepam (not an opioid but still) is 5 to 15 times more expensive on the black market than a legal prescription.All of your points are well-reasoned. Really, I agree with you on almost everything, except one big point. I think you are right that the medical cost is rather clean, well set up, and efficient. I just think if it becomes legal, there's too many extra expenses to eliminate a need for a black market on competition alone. The only way this wouldn't be the case is if all of the fine attention to detail and safety was cut, but that then undermines your point. Also, your point about tax revenue sort of undermines your point about a competitive low cost.
I'll be honest, I don't know nearly enough about the chemistry or production to really crunch all of the numbers to see how correct I am. If I'm wrong and that a black market would never compete on any level, then I may change my position. I don't think I'm totally wrong about this though. Even something as harmless as marijuana is subject to high taxes and regulations. Marijuana is one of the least dangerous substances that exists. Heroin is a whole different beast. I believe black markets would still exist and thrive.
On the tax revenue portion, I'm not saying we should heavily tax it. I think the sin taxes on cigarettes actually help create a black market and I think they're too high, but since the black market prices are consistently more expensive, there is room to tax while still leaving the price below what people pay in the black market.
I'll use Vicodin as an example. Let's say we wanted to legalize it for recreational use. Pharmacies currently sell it for $1.25 a pill. Now we'll apply a 20% sales tax (higher then any sales tax in any state). That'd raise the price of the pill to $1.50. It's competition is a pill on the black market for $5. Even with the tax, it's obvious what your Best Buy is.
I think the same would apply to heroin. Heroin is chemically similar to drugs like Vicodin and morphine, so I see no reason why the price would be dramatically different if a pharmaceutical company made it legally.
I do understand my position is radical, I actually think every drug should be available OTC.