Not really most contractors I know are just regular programmers, average in skill. Their rate is around 800eu/day, they all work in big bureaucratic enterprises. Hiring contractors is basically the only way a lot of those companies can get access to somewhat decent talent.
And it is not as expensive as it seems. If you live in a country with strong social safety nets hiring someone is crazy expensive.
The few contractors I know that work normal software jobs have lower rates, but they still make good money.
I don't know where you live, but 800 euro/day is not a standard rate for avg programmers in many parts of Europe. Is most probably half or sometimes less than that.
In the UK the rate is between 400 and 600 (450/650 euro) and is one of the market that pays the most in Europe. Many other countries are offer half that amount for a "react" guy
