Our question is:

How can Governor Schwarzenegger reconcile his push for more infrastructure spending with his war against carbon dioxide?

More on California and infrastructure:

Gov. Arnold Schwarzenegger on Wednesday released plans to boost enrollment in engineering programs at state universities.

The plan appeared aimed at appeasing the state engineers’ union and Democrats, who have balked at outsourcing government jobs to design roads, schools, levees and other projects.

Way to jump right into that “news analysis,” AP. Gratuitous opinionzing, even if it appears to be accurate opinionizing.

The news release — blog comment, rather — on the engineering initiative is here; it’s from Victoria Bradshaw, secretary of the California Labor and Workforce Development Agency. The governor’s news release states these goals:

Establish programs at the University of California (UC) and California State University (CSU) to expedite certification for veterans with engineering backgrounds. This will open up important employment opportunities to the approximately 3,000 service members discharged to California each year who hold engineering-related military jobs.

Direct $1 million in federal Workforce Investment Act funds to develop new apprenticeship programs that partner private industry and California Community Colleges (CCC).

Launch the Engineering Education Council to bring more private funds into “pipeline” programs at UC, CSU, CCC and other engineering programs. These programs help move math and science students into the engineering field.

Expand the statewide charter of High Tech High, a California charter school organization, to build out engineering-focused charter schools. In 2006, the State Board of Education approved 10 High Tech High charter schools; the Governor proposes to raise this number and expand its charter to grades K-12.

A little too much on the micro-initiative side? Makes the proposals appear like they’re aimed at appeasing the state engineers’ union and Democrats, who have balked at outsourcing government jobs to design roads, schools, levees and other projects

In any case, more kudos to Governor Schwarzenegger, who has a good appreciation of the economy’s need for skilled, trained workers in the technical fields.

From Reuters:

SAN FRANCISCO (Reuters) – California Gov. Arnold Schwarzenegger called on lawmakers on Wednesday to pass legislation to allow the private sector to have a bigger role in building, operating and maintaining the state’s public works.

The Republican governor, who has often spoken in favor of public-private partnerships to improve and expand state infrastructure, urged the state’s Democrat-led legislature to approve bills that would expand the types of projects, services and government entities that could enter into such tie-ups.

Schwarzenegger and top lawmakers rallied voters last year to support ballot measures authorizing more than $40 billion in general obligation debt to finance various public works projects. But he has maintained those funds represent a fraction of the investment the country’s most populous state must make in its infrastructure.

The term of art for these projects is public-private partnerships or Performance-Based Infrastructure (wonder who focus grouped that one). As Schwarzenegger’s news release states, he’s asking the Legislature to statutorily:

Expand the types of projects, services and government entities that can enter into PBI arrangements.

Increase contracting flexibility so the state can better negotiate with potential contractors.

Establish “PBI California,” a center for excellence to help determine which projects can benefit from PBI, represent the state in negotiations with PBI participants, ensure transparency and monitor performance.

Given the vast needs for infrastructure maintenance and expansion in California, Schwarzenegger is showing some real leadership (and appreciation for private-sector efficiencies) in offering new and not immediately universally popular financing proposals. Or so it seems at first glance…

The NAM’s policy statement on transportation issues is here.

Just finished listening to the NPR “Morning Edition” story about the drop in housing prices, which left the impression that BY DEFINITION a 3.7 percent decline in October was a bad thing. Historically bad.

Earlier, columnist Mickey Kaus asks a few telling points about media coverage of the economy:

One Hed Fits All: Are you impressed with a drop in home values of 6.6% over a year? It doesn’t seem like such a big correction, given the dramatic run-up in prices over the last decade or so. … And don’t declining prices make housing more… what’s the word? … affordable? … This evening NBC Nightly News billboarded a “housing CRISIS.” (Link available here.) I thought a “housing crisis” was when people couldn’t find housing, not when it got cheaper. (NBC’s expert: “It’s very, very difficult to find any silver lining.” No it’s not.) …

As Glenn Reynolds says, it’s all about the narrative.

Hat tip: Instapundit.

UPDATE (11:40 a.m.) The Oregonian today runs this five-day-old story as part of a package, “No shelter from the downturn.” Here’s the absolutely fabulous subhed:

The housing slump will likely
infect the larger economy,
and experts fear the nation
will slide into recession

In case you weren’t watching PBS’s “Nightly Business Report” on Christmas eve, here’s the transcript of a good piece on U.S. manufacturers pursuing additional export markets. Featured is Quality Float Works, a Schaumburg, Ill., manufacturer of metal floats and vessels. Sandra Westlund-Deenihan, the company’s president and design engineer, is a member of the NAM Board of Directors.

David Huether, the NAM’s chief economist, also provides a bit of balance to the tendency to overemphasize the role of the lower dollar in promoting exports, now and into the future:

Growth overseas is strong, not only in Asia, but in south central America and Europe as well. So if the dollar would appreciate modestly, I still think as long as growth overseas maintains a good pace, that we will continue to see solid export growth going forward.

Absent new, protectionist legislation from Congress, that is — if we may add a comment, David.

Catching up with one’s hometown newspaper — RIP, Oregon Journal — we’re reminded how dull The Oregonian’s editorials are. Conventional wisdom battles it out with tired, anti-business talking points, and the winner is dullness.

Still, the editors make an effort to add some contrary points of view on the op-ed page, or at least allow an occasional response from those who it has criticized. Fitting that category today is a punchy column by Blake Rowe, senior vice president at Longview Fibre and chairman of the board of the Oregon Forest Industries Council. In “Seeing More Closely into Oregon’s Forests,” Rowe rebuts the newspaper’s dismissal of the industry as in danger of fading away, noting that Oregon remains the No. 1 timber producer in the country.

Rowe also refutes The Oregonian’s factual misrepresentations, things we’d again categorize as tired, anti-business talking points:

Two allegations are simply false. The editorial claims that “too many watersheds continue to be degraded” and “tree owners who long regarded the resource as a sustainable asset are being spurred to capitalize it as a one-time crop.” Oregon’s landmark Forest Protection Act, passed in 1971 with industry leadership, provides strong watershed protections and requires rapid replanting of trees after harvests to guarantee they aren’t one-time crops.

It’s true that catastrophic fires threaten Oregon forests. And a number of Oregon’s rural communities are haunted by unemployment. Unfortunately, these problems are caused by failed federal forest policies. Shrinking federal harvests have shuttered dozens of Oregon mills, threatening the basic infrastructure Oregon needs to sustain a healthy forest products industry. But these are issues beyond the control of the Oregon Board of Forestry.

Like all of Oregon’s boards and commissions, the Board of Forestry is a volunteer group of Oregon citizens. Twenty years ago state policymakers changed the board from a committee of competing interests to a balanced, public interest board. It insults the citizens who have invested thousands of hours of volunteer time to improve Oregon’s forests to declare that the industry has treated the board “as their private club.” Four successive Democratic governors have appointed the board’s citizen members, including the current members and retiring chair, to serve in the best interest of all Oregonians.

But that’s always been the criticism! How can we think differently?

In any case, an effective response and an unfortunately necessary defense of an industry that too many critics dismiss too reflexively. Thanks, Mr. Rowe.

And the media’s role in predicting/creating a recession. It’s all about the narrative, says Glenn Reynolds.

UPDATE (9:15 p.m.) Larry Kudlow’s cheerful. But then, when isn’t he?

At his year-end news conference, Mr. Bush said with optimism that the economy is fundamentally sound, despite the housing downturn and the subprime credit crunch. The very next day, that optimism was reinforced with news of the best consumer spending in two years. The prophets of recessionary doom, such as former Fed Chairman Alan Greenspan, Republican adviser Martin Feldstein, ex-Democratic Treasury Secretary Lawrence Summers, and bond-maven Bill Gross have been proven wrong once again.

The Financial Times has released the list of its 10 most read stories in 2007 according to its website. NRO has the list here:

1. Learn from the fall of Rome, US warned
2. Chinese military hacked into Pentagon
3. Iran on course for nuclear bomb, EU told
4. Google’s goal: to organise your daily life
5. Pelosi backtracks on Armenia ‘genocide’ bill
6. Industry caught in carbon ’smokescreen’
7. Vista marks end of an era for Microsoft
8. Memo to Obama: win Iowa or lose the race
9. Gates warns on US immigration curbs
10. Globalisation backlash in rich nations

Fascinating that the story about GAO Comptroller General David Walker’s demographic and fiscal admonitions ranked first. We’re generally sceptical of stories comparing the United States to Rome — it’s a good subject for a best-selling book, sure, but one that lends itself to glib and facile analyses. Or really forced ones, depending on the author.

Besides, everyone knows it was overtaxation that caused Rome’s fall.

UPDATE (8:10 p.m.): And bloggers are emulating Caeser.

UPDATE (3:10 p.m. Friday): Welcome, holiday readers from Instapundit, and thank you, Professor Reynolds. In case you’re interested, the phrase “fall of Rome” has indeed appeared in rock ‘n roll lyrics — Elvis Costello, of course, back when his preachifying was more metaphorical.

From The Financial Times:

Metal and oil prices rose on Wednesday following an announcement by China that it was to scrap import duties on copper, coal and aluminium, and halve tax on oil products from the beginning of next year.

Export taxes on some steel products, coking coal and coke will also be raised to curb profits on exports of polluting products, the finance ministry said on Wednesday.

Wall Street Journal focuses on the export duties:

China currently has far more steel than it can use and therefore the tariff increase is likely to weigh on domestic prices next year as less gets exported. That said, the move should reduce steel production, thereby easing pollution. China also hopes the move will help it avoid anti-dumping disputes with other countries.

China’s overall trade surplus has been rising by about $70 billion annually in the past two years, so lower exports of products such as steel would help improve the trade balance.

Mixed bag, seems like…Lower import charges on metals could increase world market costs, hitting those U.S. manufacturers who are already struggling with higher costs of raw materials.

But the fact is, China’s cutting duties on imports, a significant step toward freer trade.

Exotic firs thrive on Christmas tree farms

KINGS VALLEY, Ore. — Most of the 8 million Christmas trees harvested in Oregon this year will be traditional noble or Douglas fir trees.

But a type of European fir, prized by growers for its hardiness, is slowly taking root in the state, which is the country’s No. 1 producer of Christmas trees.

The Nordmann fir, a native of the Republic of Georgia, and the closely related Turkish fir are becoming increasingly popular in Oregon’s Christmas tree industry.

“They just seem healthier and stronger than the nobles. They look really good for us,” said Betty Malone, who runs Sunrise Tree Farm in Benton County with her husband.

It’s OK, really. Santa Claus came from Georgia.