Look at the track record of nationalized industries. It's not good.
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The main potential problem of democratic socialism is that it can fuel a sort of populist policies, where politicians promise all kinds of benefits to the voters. The politicians who promise and implement those things only get the benefits (votes and power) and never have to answer for the problems (e.g. inefficient and expensive structures that were perhaps not needed at all) they create. It's always the cleanup crew (the politicians who are responsible and implement austerity) who get the blame.
Like almost all things in this world, democratic socialism can also be great if it's implemented well. For instance, well-funded and well-planned public schools can be awesome for the whole society, both the poor, the rich, and everyone in between. But that requires skill, intelligence, hard work, all of which are scarce resources.