The core argument of Niall Ferguson's "The Great Degeneration" is that not all institutional frameworks provide the same benefits. Some institutions foster environments where individuals and communities can thrive, promoting innovation and cooperation. These positive combinations motivate people to engage in productive behaviors, enhancing societal welfare.

In contrast, certain institutional arrangements can lead to detrimental outcomes, discouraging constructive actions and exacerbating social discord. Ferguson emphasizes the importance of understanding the quality and implications of different institutional structures, as they fundamentally shape economic and social dynamics.