Freud claims that it is quite normal for young people to have sexual feelings for their parents. What sort of perverted feelings will this cause in the development of a child? How will that encourage incest?

As I said in my answer to the previous question, for Freud everything is based on sexuality. Some aspects of these theories may have some sort of impact in certain situations, but the fact is that he explains everything through sexuality. Certainly when these become the prevailing and one-sided idea, it is clear that an excessive attention for these aspects can lead to some perversion, and can distort and contaminate the behavior, which should be based on sentiments and spiritual aspects as well.