Superior Argument and Inferior Argument debate with each other over which of them can offer the best education. Superior Argument sides with Justice and the gods, offering to prepare Pheidippides for an earnest life of discipline, typical of men who respect the old ways; Inferior Argument, denying the existence of Justice, offers to prepare him for a life of ease and pleasure, typical of men who know how to talk their way out of trouble. At the end of the debate, a quick survey of the audience reveals that buggers – people schooled by Inferior Arguments – have got into the most powerful positions in Athens. Superior Argument accepts his inevitable defeat, Inferior Argument leads Pheidippides into the Thinkery for a life-changing education and Strepsiades goes home happy. The Clouds step forward to address the audience a second time, demanding to be awarded first place in the festival competition, in return for which they promise good rains – otherwise they'll destroy crops, smash roofs and spoil weddings.
The story resumes with Strepsiades returning to The Thinkery to fetch his son. A new Pheidippides emerges, startlingly transformed into the pale nerd and intellectual man that he had once feared to become. Rejoicing in the prospect of talking their way out of financial trouble, Strepsiades leads the youth home for celebrations, just moments before the first of their aggrieved creditors arrives with a witness to summon him to court. Strepsiades comes back on stage, confronts the creditor and dismisses him contemptuously. A second creditor arrives and receives the same treatment before Strepsiades returns indoors to continue the celebrations. The Clouds sing ominously of a looming debacle and Strepsiades again comes back on stage, now in distress, complaining of a beating that his new son has just given him in a dispute over the celebrations. Pheidippides emerges coolly and insolently debates with his father a father's right to beat his son and a son's right to beat his father. He ends by threatening to beat his mother also, whereupon Strepsiades flies into a rage against The Thinkery, blaming Socrates for his latest troubles. He leads his slaves, armed with torches and mattocks, in a frenzied attack on the disreputable school. The alarmed students are pursued offstage and the Chorus, with nothing to celebrate, quietly departs.
Praxagora then goes on to explain the details of the new government to Blepyrus. She proposes banning all ownership of private wealth and establishing equal pay for all and a unified standard of living. She further explains that people will no longer have a need for personal wealth as all basic needs will be met by the common fund. She further adds that men and women will be free to sleep with anyone they want, so long as they first sleep with the uglier members of the opposite sex. Parental responsibilities will be shared by the community as children will no longer know their fathers. Slaves will work the fields and new clothes will be made when they are needed. Praxagora elaborates that there will be no more lawsuits, since there can be no debt in a society without private wealth. Punishments for assault will come out of the offender's bread ration and theft will be obsolete as all men will be given their fair share. Walls within homes will be knocked down and all will live in a common living space, courthouses and porticos will be turned into communal dining halls. Prostitutes will be put out of business, but slaves will be banned from sleeping with free men.
