I've seen good people get fired for what seem like purely political reason (in California). They got a month of severance but come on. My father worked for a handful of companies his entire career and had true loyalty for them. The company, in turn, took care of him his whole life. This does not exist anymore in the private sector. If your org seems to have it, I'm sorry to tell you that it might change one day (and very abruptly). I've seen this happen to places that were considered unassailable.

In my experience employment is not lower risk at all, in terms of continuity of employment. Companies will fire you even in countries where your rights are strongly protected, the only difference being you get paid for the nuisance. This is not really a differentiator: let's say that incentivised employees get a month of salary for each year of service, then you can factor that in your daily rate as a contractor.

The big advantage is when you have strong rights and we're talking about long term illness. For example in Italy you can't be fired if you are truly sick for months: your employment will be retained, however you might not get paid, or not get paid fully.

Other advantages might be related to discrimination: for a young white male it might be easier to get a developer job, or for a seasoned white male might be easier to get a lead/manager role. It's the same with employment, but as a contractor, passing job interviews becomes a significant part of your job, as well as cultivating relationships.

> It's tougher to fire employees than contractors

I keep reading this here, but this doesn't square with the reality I see all around me (this may be specific to the USA). I've observed plenty of people getting fired, sometimes on short notice and for non-obvious reasons, often only known to the employer and employee. As someone who does not run a business, could someone explain to me the details about exactly what makes firing someone "difficult" for an employer?

Not all states have at will employment.

This is right. Lower risk, lower reward. You'll make some money, but won't share in most of the upside.

Up to you to decide which path you want to take. Depends what you want from life.