Thanks, Doug.  I should have said when FDR "proposed" it instead of "enacted".  As far as the Trust Fund is concerned, I think you're making a distinction without a difference.  It may be counted in the budget as a separate line item, but like you said, the feds have overborrowed from the fund.  Whether or not such borrowing is permissable is a separate issue, but that doesn't change the fact that there really is no Trust Fund.  Every Congress since 1968 (or 1969 if you prefer) has spent the money that was to be set aside for retiring baby boomers.

Social Security will take in around $654 billion in payroll contributions and pay out $662 in benefits this year.  Technically, it's not running a deficit because of the interest owed to it by the federal government, but it's deceitful for our elected officials to pretend that the Trust Fund still exists.

Regards,
Scott Perry