USA Question

The USA has more people in jail and prison than any other country on earth. But the USA is the free-est country on earth. What am I missing, cause there's something wrong with this equation. Both these statements cant be true. But it is verifiable with a headcount that the first statement is true. So is it possible the second statement is NOT true? Then what are the Democrats and the Republicans talking about with all this "the rights and freedoms we enjoy." Help me out.