I was falsely arrested

I get what you're trying to say, but you're wrong. Culpability is not the same as cause and effect. Either you are conflating the two concepts, or you are assuming that someone else is conflating the two concepts.

"If those cops had done their job, two people wouldn't be dead." This is a statement of cause and effect. It is not a statement of culpability.

Imagine that I said, "If you had remembered to lock your car, your backpack wouldn't have been stolen out of the trunk." You can accuse me of "victim-blaming" or you can realize that I'm not stupid and I actually do understand that the thief is to blame for the theft.

If there is a 4% error rate with prisoners on death row, I'd imagine that it's even higher in the general prison population (because they're subject to less scrutiny?).

Depends on type of error. I have heard estimates as low as 50% when you include procedural issues. As in would they have gone to prison with competent legal counsel.

Reflexive defense of authority is a pretty common pattern. People doing it don't realize they're doing it, or they wouldn't. That's one of the fundamental mechanisms of racism, among other unpleasant things. Hardly anyone thinks of themselves as racist, so when they make a racist argument (not saying this one is, just making a broader point), they don't think it's racist - they think it's all about the equality.

The classic example of that is the "All lives matter" response to "black lives matter". Saying black lives matter is a response to the daily bigotry and institutional racism that black people in America suffer, every day. Responding to that with "all lives matter" is a way of disempowering even the acknowledgement of institutional racism, of denying the unique (and uniquely negative) experience of being black. But it sounds like equality. People who say it don't say it to be racist - quite the opposite. Being racist by acting not-racist. It's ironic and strange-loopy, but that's how it works.

Take it back to the post you're responding to. It's a reflexive defense of authority, the "few bad apples" argument. The first response to obvious institutional racism (really, this case boils down to "all blacks look alike") is to shout "Hey, the System isn't broken!" It's not broken if you're white, and you don't recognize how it treats people who aren't like you. It disacknowledges the experience of the individual at the hands of the System, by making sure defending the System comes first.

Thinking about this stuff is hard. Just watch... this comment will get a lot of downvotes, for even saying this stuff out loud.

The state needs to financially make whole persons who are wrongly arrested. There needs to be a standard set of damages that get paid out to someone who is in jail wrongfully.

I would propose that the state owes you double the highest paid salary that you have earned in your career for the duration of your stay in prison. This is to both make a person whole for their missed earnings, and to repair the damages that having an arrest on your record does to your future earning potential. Further, there should be a minimum cap of $5,000 / month, and a maximum cap of $1M / year. Finally, I would propose that this value goes up by 10% each year to account for potential career growth over that time.

Not only does this attempt to make someone whole for the time that they lost, but it puts a real financial burden on the state for making these kinds of errors. Right now, the state faces almost no downsides other than the cost of housing someone in a prison.

Edit: as noted in a comment below "Wrongfully arrested" may be more appropriate read as "Wrongfully jailed". This program or policy would be targeted at affecting prosecutorial misconduct and not police misconduct. While police misconduct is still a massive issue I think there are different policies that should be used to address police misconduct.