The Space Shuttle is not LEO on the cheap. The Sea Dragon does a lot better (as low as $8.90/lb, in 1963 dollars).

http://www.dunnspace.com/leo_on_the_cheap.htm

http://neverworld.net/truax

http://neverworld.net/truax/Sea_Dragon_Concept_Volume_1.pdf

http://neverworld.net/truax/Sea_Dragon_Concept_Volume_3.pdf