In the UK at least, the word “Dutch” is frequently used in phrases such as:
Dutch Courage - getting drunk in order to steel oneself for a task otherwise difficult to face. Dutch Auction - an auction in which the selling price falls as the bidding progresses.
Nobody has ever suggested to me that this is any kind of racial slur, but is it in any way related to the people of Holland? What is the origin of such phrases?
The derogatory implications of many such phrases derive from the Anglo-Dutch wars of the 17th century. Many have passed out of common usage.
I like these definitions from, appropriately enough, Brewer’s Dictionary of Phrase and Fable:
Dutch bargain: A bargain settled over drinks, the Dutch being formerly reputed to be steady drinkers.
Dutch courage: (as above) The courage exerted by drink. The Dutch were considered heavy drinkers.
From ‘steady’ to ‘heavy’ in no time at all.
It does seem that the Dutch were regarded as a drinking nation by the British. Not now of course. The British have the reputation as drinkers while the Dutch all smoke dope.
AFAIK, “Dutch courage” was originally a racial slur, and dates from the time (in the Seventeenth Century) when the Netherlands was the principal rival to England in terms of Naval Power. It is based on the (then popular) stereotype of Netherlanders as consuming vast quantities of gin. The suggestion was that the needed to to this in order to fight the clean-limbed, courageous English lads with hearts of oak. Hurrah!
Yes, Dutch auction is not derogatory but a traditional form of auction that began there. Many other phrases came into the language in the C17[sup]th[/sup] - C18[sup]th[/sup] at times when Britain and the Netherlands were at war, and have stayed ever since.