You seem to assume that cops regularly arrest people who don't deserve to be arrested. I don't think this happens very often. There are many, many instances when a cop observes something that appears to be evidence of criminal behavior, but turns out to be perfectly innocent. By refusing to answer any questions, you're denying the officer the information that is the most useful in making this determination. It's your choice, and it's certainly your right, but I don't think it's in your best interest, despite what others here might tell you.

A big part of the job of policing is resolving disputes. These are far more often resolved by mediation than by arrest. When I would encounter someone who had been the subject of a complaint by someone else, and they initially refused to speak to me, I would tell them, "What would you rather have - their word against yours, or their word against nothing?" Granted, if they had been in the wrong, it wouldn't necessarily be in their best interest to talk to me. But, most of the time, there's a little wrong on each side, and the truth of the matter lies somewhere in between the two accounts.

When we completed a call for service, we had to report a "disposition code" over the radio. Examples were "MA-1" (one misdemeanor arrest), "HOJ" (handled other jurisdiction - handed the case off to another agency), or "UTL" (unable to locate). By far, the most common one used was "AC" - advised and complied.