Five Ways Privatization Degrades America | Common Dreams: "A grand delusion has been planted in the minds of Americans, that privately run systems are more efficient and less costly than those in the public sector. Most of the evidence points the other way. Private initiatives generally produce mediocre or substandard results while experiencing the usual travails of unregulated capitalism -- higher prices, limited services, and lower wages for all but a few 'entrepreneurs.'"
And corruption of various types. Chicago is a great example. The "Hired Trucks Program," the parking meter lease, privatization of the parking garages, the Chicago Skyway deal--all the public got were higher prices and more corruption.
Of course, there are situations where privatization does produce savings on functions that don't need to be done by public employees. The problem is that once the door is opened to privatization, all sorts of unsavory characters start thinking about ways they can cash in.