It's because we have a different idea of what freedom is.
To us the idea that if you make it mistake it will be held against you forever and knowledge of it made available to everyone indefinitely doesn't sound like freedom. I understand that in the US once you get say a criminal record or have financial problems they never go away completely and will be noted by every employer and financial institution you deal with for the rest of your life. Essentially your life is blighted and you can never be rehabilitated.
In Europe many mistakes are eventually forgiven and forgotten. Not all of course, some crimes are serious enough to warrant being permanently associated with an individual, and of course (in)famous people can do little to make people forget beyond changing their identity. For the average person though something like bankruptcy will eventually be left behind and they can be fully rehabilitated, free to participate fully in society again.
US freedom is more like freedom from interference. People don't mess with you, but on the other hand if something bad happens no-one helps you either. In Europe freedom means the freedom to live a reasonably pleasant life, with opportunities and people who love you, and with some protection against the worst things that can happen to a person. That's why the European Charter on Human Rights lists things like privacy, having a family life, shelter and basic medical care as human rights. A person suffers and has less freedom without those things.