"Dutch treat" or "The American system"

In the US if a group gathers for lunch and everyone pays their own way we call that going "Dutch." Here, I have learned, it is called "the American system."

Huh?

My Arab friends have explained that it is traditional to argue over who gets to pay in this culture. If they agree ahead of time that each will pay their own way they call it the American system. It's kind of a slam... a fellow Arab would offer to buy your meal but if you dined with an American he wouldn't.

Hmm. I don't like the implications of the phrase. It reinforces the stereotype that Americans only look out for themselves.

And I sincerely apologize to the Dutch. It took having the practice be called the American system before I realized it was an insult.

Then again, I was in grad school before I realized that to "Jew someone down" on a price was a negative stereotype. I just thought it meant the person was good at bargaining!