I'm not sure that explanation of red shift is entirely correct. If I understand it the claim would be that all of the shifting of the light spectrum occurred instantaneously during its creation and emission. I'm fairly confident that this is not what the cosmic redshift effect says. Rather, the shifting occurs across the entire path that the light takes, from its source to its ultimate detection. The red shifting is an effect caused by the changing shape and scale of spacetime, and light travels through this change, and continuously shifts more and more as the Universe expands.
I'd have to do a fair amount of reading to be sure of this but I imagine that the effect would not be the same in a contracting Universe at all, but would be reversed. Thus light would blue shift in a contracting Universe. Therefore the observation of a Universal Red Shift across the History of the Universe is, after all, experimental verification of the idea that the Universe is expanding.
Although my guess is that you were probably already going to I'd be slightly wary of the above explanation since I don't do much cosmology and this time I'm going on memory. Most of the explanation above is, I'm sure, on the right lines, but you would be well-advised to do some reading into the subject. In particular, it's important to understand how the "Friedmann-LeMaitre-Robertson-Walker metric" works, since this is the model that most accurately describes the shape of our Universe and is the one that accounts for, among other things, the red shift. Actually, some reading into the subject would be a good idea even if you did take my answer seriously, since across this thread you seem to me to have demonstrated a variety of misconceptions about Modern Cosmology. No harm in that really, but if you are basing your views of the Universe on a series of misconceptions then you shouldn't be surprised if those views turn out to be wrong.