Gasoline at Ten Cents a Gallon?

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Economist and libertarian George Reisman argues that gasoline is at ten cents and falling. Or it would be, if we were on a gold standard.

Gold is now at $700 per ounce, and rising. To the [left] is a picture of a $20 United States gold coin known as a Double Eagle. If you look carefully, at the bottom of the coin, you can actually see where it says “Twenty Dollars.”
This coin contains approximately one ounce of actual gold, which means that at today’s market price of gold, it’s worth $700. And this means that one gold dollar is worth $35 of today’s paper dollars. And that means that one gold dime is worth $3.50 in today’s paper money. This last, of course, is roughly what a gallon of gasoline costs in today’s paper money. Which means that a gallon of gasoline costs just 10 gold cents.

This is good news until you remember that the same kind of calculation applies to your paycheck. How does it feel to be working for less than ten bucks a day?

Gasoline at Ten Cents a Gallon and Falling