There are things going on in the Australian economy right now that are not just unprecedented, they are downright weird.

Key points: Despite strong exports, low inflation, low interest rates and low unemployment the economy is struggling to grow

Despite strong exports, low inflation, low interest rates and low unemployment the economy is struggling to grow Consumer spending remains flat even after tax cuts for lower income earners

Consumer spending remains flat even after tax cuts for lower income earners Interest rate cuts don't appear to be stimulating the economy either

The economy is flirting with recession.

And to achieve even the current level of insipid growth, the pedal is flat to the boards — record-low interest rates, record levels of household debt, relatively low unemployment despite the latest uptick, booming exports and huge government spending.

There is plenty of wood and kero going onto the fire, but it is not getting hot.

People are just not spending — perhaps because they feel they are not getting ahead.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 19 seconds 19 s Alan Kohler explains income, economic growth, inflation and interest rates

Everyone has a side hustle now

During the week, 26-year-old Joel Kaithavelil works in finance.

On weekends, he drives an Uber.

"I drive an Uber just for the flexibility that it provides and the extra income that I'm able to earn from it," he told 7.30.

He has been driving for about three years, but over that time, even Uber driving has become more competitive.

Joel works in finance during the week and drives an Uber on weekends. ( ABC News )

"When I first started, I was earning a couple of hundred dollars pretty easily, just by doing my four or five hours on the weekend," he said.

"Now it's gotten a bit harder to match that level of income.

"Low wage growth and under-employment has pushed up the number of Uber drivers."

But in an environment where a pay rise is hard to come by, every little bit helps.

"I think it definitely does assist in people's day to day lives," Mr Kaithavelil said.

"It definitely gives people the ability to catch up on anything that they might have lost in the past couple of years in terms of wage growth."

Because he saves most of his weekday work money, he uses the Uber cash for day-to-day expenses.

He is a careful spender and hopes to have enough for a deposit on a house or apartment within the next year or so.

"I think there are times when I almost feel as if it's a lifetime away or it's going to take quite a long time for me to get there," he said.

"You're always hearing news about property prices going high or property prices going low. I think when there's a bit of confusion about what's going to happen, it's a bit scary at times."

Spending data - who is right?

Shoemaker Andrew McDonald has seen a marked drop in sales recently. ( ABC News )

Conventional wisdom says that tax and interest-rate cuts are like money in the pockets of consumers, stimulating spending and feeding economic growth.

That doesn't appear to be working.

The Morrison Government rushed through its tax-cut legislation before the end of the financial year to ensure the $8 billion it was estimated to cost this year would flow swiftly into the economy.

But shoemaker Andrew McDonald hasn't seen that.

He has been making shoes for 30 years and thinks business is going through "a soft patch" at the moment.

"I'd say the drop-off this month, it's been about a 30 per cent drop in ready-to-wear sales," he told 7.30.

He said shoppers appeared reluctant to spend money on things they don't see as necessary.

"They're thinking, 'Maybe I won't spend money on those shoes, I will leave it to later and see how the economy's going, see if I've still got my job, I might not be getting a pay rise this year'," he said.

According to the official Australian Bureau of Statistics (ABS) data, the tax cuts have not resulted in increased consumer spending.

For the 2019 September quarter, retail sales fell by 0.1 per cent, with an annual growth rate of 2.5 per cent.

But data taken directly from the spending patterns of Commonwealth Bank customers show a different story.

According to CEO Matt Comyn, the tax cuts have worked to boost spending.

"Post the tax cuts that came through on 1 July, we saw that provide some support," he told 7.30.

"We saw that post the tax cuts, actually, our customers increase their spending by 28 per cent.

"Across a number of different areas in July and August, actually, household spending intentions increased."

Mr Comyn thinks more tax cuts could be just the thing to fire up the economy.

"We'd argue that actually bringing forward some of the tax cuts that are otherwise planned for 2021/22 to next year, we would say would certainly have a positive effect," he said.

Are rate cuts sending the wrong signal?

Commonwealth Bank CEO Matt Comyn thinks that tax cuts are more likely to stimulate the economy than interest rate cuts. ( ABC News )

Mr Comyn thinks multiple interest-rate cuts have sent the wrong signal to consumers.

"The cash-rate reduction is well intentioned," he said.

"But what we've seen, both in some of the external surveys as well as our own data, and what our customers are actually doing at the moment, it's a neutral to negative effect."

The overnight cash rate is sitting at a record low of 0.75 per cent after 15 cuts in a row.

Reserve Bank governor Philip Lowe has indicated the RBA would like the Government to look for other options to boost the economy.

As a board member, Professor Ian Harper is in the room when the Reserve Bank meets each month to determine interest rates.

He agreed to give his personal view on the economy — and why cutting interest rates towards zero was no longer working.

"We've had periods in the past, of course, where inflation's been low but growth has been fine," he told 7.30.

"But for us to have low interest rates, low growth, low inflation all at the same time, while a labour market is strong — that is to say unemployment is also low — that's pretty unusual."

Professor Harper said the Reserve Bank's rate cuts were not working as expected.

"Normally you'd expect what that would do is to encourage people to consume more and to invest more," he said.

"Now, neither of those things are happening in the way that they've done in the past.

"Precisely why — unless you just sort of wave your hand and say, 'Look, it's all about uncertainty' — we're not so sure.

"We really don't know the answer to that question.

"What is true, is that both here in Australia and elsewhere, economies aren't responding to easier monetary conditions in a way that was true in the past."

Watch Alan Kohler's four-part special on the economy on 7.30, Monday to Thursday this week.