system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: If all drugs were legal wouldn't criminal organizations still have an advantage since they don't have to pay min-wage, taxes, and can sell at a cheaper price?
gpt
For a possible parallel, look at alcohol. 

Some people in rural areas still distill and sell moonshine, both as a sort of "Screw you" to the government, and also because it's strong and cheaper to buy with no taxes attached.

However, bootlegged liquor is many, many orders of magnitude less popular than it was during prohibition, and the confrontations between moonshiners and the law are normally restricted to the odd standoff between a few people and a few cops or forest rangers out in the woods, rather than constant drive-bys with automatic weapons in urban areas (which we saw during Prohibition).

So yes, there'd still be a smaller trade in illegal drugs, but the demographics would probably change drastically. Instead of powerful foreign-based cartels moving weed over the border by the bale, for instance, you'd probably have survivalist types and anarcho-libertarians growing it, illegally due to bypassing regulations, in the woods here and there, because "it's the principle of the thing".