if benefits like insurance are unrelated to your job, and there are strong unemployment benefits, contracting would be 1000 times better.
Contract work virtually always pays much more than full-time on an hourly basis, since now you've got to cover your own health care, social security, and so forth. And then on top of that you're charging more because there's no security.
The whole exchange you make for full-time employment is to be paid less than short-term contracts, in exchange for greater stability.
There's what you're talking about, W-2 contractors who work through a staffing agency which provides temporary work for lower-skill positions. They are often paid less than full-time but this is usually because they have less skill/experience. An equivalent full-time job often doesn't even exist at the company.
And then there are independent contractors (aka consultants) who legally function as their own company, and who do higher-skill contract work. They are paid much more than full-time.
I quit my $60k CTO job and they paid me $140k to stick around as a contractor. Most
$300k is CEO of a large company salary in Sweden. The prime minister earns around $200k.