Final answer:
When the id overwhelms the ego, Freud suggests the person experiences neurotic anxiety due to the inability of the ego to mediate between the id's demands for instant gratification and the superego's moral strictures.
Step-by-step explanation:
According to Freud, when impulses from the id overwhelm the ego, the person experiences neurotic anxiety. This is a state where there is an imbalance in the psyche due to the id prevailing over the ego, and the ego's capacity to mediate between the id's demands and the superego is compromised. The id operates based on the 'pleasure principle', seeking instant gratification, while the superego works on moral principles. The ego, following the 'reality principle', tries to satisfy the id's demands in a socially acceptable manner. When the ego fails to fulfill its function as the mediator, anxiety manifests to alert the individual of the conflict.
Freud proposed that defense mechanisms are one way the ego tries to handle the demands of the id and the superego when overwhelmed. Neurotic anxiety can be seen when an individual exhibits unhealthy behaviors or experiences negative emotions due to the imbalance. Recognizing this anxiety is central to understanding Freudian psychological theories and how they relate to personality disorders and mental health.