I believe they objectively are, yes. And for many reasons, all of which must be seen contextually in the frame of history. They're not the best we've had, as a measurable fact or certainly a verifiable/pollable mass opinion.

Staffing levels of institutions has fallen. Spending on public institutions has fallen, and therefore the quality of personnel. Many have moved their functions into the private sector. Trust in institutions has fallen. Effectiveness of institutions has fallen. Many institutional buildings are decrepit. Morale is low.

Of course the strength of institutions rises and falls through history, and some transform or vanish completely. At one time the universities all but disappeared from Europe (save for strongholds in Paris, Bologna, Oxford and Cambridge), only to appear again, vibrant after the Middle Ages. I think they are going through a new crisis right now, one that originates within.

> If these institutions are the best we have, then by definition they are not dysfunctional

That logic seems wonky to me. Currently institutions don't meet the needs of a the complex society we have, and there are obvious consequences in poor or inequitable healthcare, education, policing, defence, environmental management...

FWIW I'm a big believer in strong public institutions and hope to see many restored to integrity, maybe even within my lifetime.