Scott Draughon debated Hilary Kramer on Fox News Live Sunday afternoon about the fortunes of the New Economy and the investigation of AOL/Time Warner by the Department of Justice (5:40 – August 4th). In response to questions from Host Juan Williams, Scott distinguished the AOL/Time Warner accounting questions from the Worldcom and Adelphia situations. Noting that Worldcom involved admitted fraud and billions of dollars, Scott argued that AOL/Time Warner accounting practices were aggressive, but defensible. Scott emphasized that the reduction of value in the NASDAQ, including the decline in AOL/Time Warner stock value, could only be remedied by changes in fiscal policy. Scott advocated changing government focus from investigating allegations of accounting fraud to changes in government policies affecting the New Economy.