It can go down the path of bigger government and more spending or the conservative route championed by Ronald Reagan, which is the best way, he said.

"It's smaller government and letting people have more of their income," Romney said in Council Bluffs Thursday. "It's the right path for America."

Romney appeared before some 200 local Republicans at the Mid-American Center and spoke of the challenges facing this country, both at home and abroad.

"We're facing competition for our goods and services. We're spending too much money in Washington, using too much oil, our schools are falling behind," he said.

He expressed dismay at the growing number of children born to a single parent.

"They deserve a mom and dad," Romney said.

America's strength to face these challenges is the strength of the American family, he said.

"Source of the American strength is the American people who love the tradition of family, who love liberty and freedom," Romney said. "You strengthen the people by letting them keep more of their paychecks."

Romney believes his years managing state government as the conservative governor of Massachusetts make him a better choice for president than any of the liberal Democratic Party candidates who "have never managed a corner store."

Following his speech, Romney told reporters how his health care plan in Massachusetts is different than the proposal forwarded by Sen. Hillary Clinton.

"Sen. Clinton's plan is large government bureaucracy and restrictions on the kind of care given," he said. "My plan would allow people to purchase private insurance, not government insurance. No government-managed health care and no increase in taxes."

Turning to the war in Iraq, Romney said it hasn't been managed well; but he does support the so-called troop surge ordered by President Bush.

He said he does not support amnesty for illegal immigrants.

"There should be no special treatment," he said. "Illegal immigration is not something we should encourage."