All of these body shops Deloitte, Accenture etc. bill out at $200/hour and pay the person doing the work $30-$40/hour. Do the math.
Of course, an amount is agreed upon at hire but the sentiment is, why hold out for more when I can take a job when no other offers are available. Some of us choose to not be a burden on society. At least I know that was my thinking when I got hired. My main thing is, with contract work, I'd be out of work every 3 months, 6 months or a year. As someone that likes to pay their bills, I take comfort in knowing that pending a major screw up on my part, I'll still have my job.