Why are people from the Netherlands called Dutch?
In the past one of the languages used in the Netherlands was 'Duutsch' also used in Germany. For the English were in that time the Netherlands and the Germans the same so we were all called 'Dutch'. Later on it became different and the Netherlands was in that time more important to the English than the Germans. So they had to do something and they named the people from Deutschland Germans and they kept using Dutch for people from Nederland. Because the Dutch were more important in that time (for the English) than the Germans they gave the Germans a different name (the most important keeps the name).
The people of the Netherlands call themselves: 'Nederlanders' in dutch language. In English we call ourselves: Dutch. Or sometimes we use 'Dutchmen' to refer to dutch people. The word 'Dutch' comes from the word 'Diets' which was how the Netherlands were referred to in ancient times. The English then translated 'Diets' to 'Dutch'. Therefore we are called 'Dutch people'.