As liberty advocates we should all be in favor of completely free markets. A free market is exactly that, freedom to buy and sell without government getting involved in any way. With the idea of freedom comes the possibility of trade of what we today call "drugs" but are just goods like everything else. If there is a market for it these goods will be produced not because the producers are evil doers but because there is a demand for it by consumers.
What happens when government intervenes in the market and outlaws certain goods? A number of things happen. A "new" market is created the "black" market, the good becomes artificially scarce, and there's a new risk involved when conducting market transactions for the good.
What does this mean for society? The black market that erupts is usually overtaken by mafias and gangs who are willing to break the laws to provide for the demand. As we can see in Mexico drug lords make a would be peaceful market into one of complete chaos and destruction to retain a monopoly of control that the government has given them. There's no peaceful means of competition when the market is obstructed by government intervention. If you think there would be violence with a market of drugs I need only point you to the states that have allowed dispensaries and you don't see them going and shooting each other over territory.
The scarcity that is created artificially now leads to a "street" price that is much more than a free market would allow for. People who would be peacefully entering voluntary transactions in the market are now forced to pay more for a good then they would be otherwise.
The risk that is created also leads prices to rise because of the possibility of incarceration.
A free society would allow for free men and women to decide upon themselves what goods they would like to buy. A free market would make these goods more readily available at lower costs and higher quality.
The State hampers any economy and on top of its already monopoly of violence that it commands over the people it creates even more violence when intervening in the marketplace when restricting goods that people demand.
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