It is natural to assume that the expanding universe was arbitrarily compact in the sufficiently remote past, in which state gravitational time dilation strongly affected its behavior. We first regard gravitational time dilation as the speed time dilation of a clock falling gravitationally from rest. Energy conservation implies that this depends solely on the the Newtonian gravitational potential difference of the clock trajectory's ends. To extend this to the relativistic domain we work out relativistic gravity theory. The metric result it yields for gravitational time dilation is consistent with our Newtonian gravitational potential result in the Newtonian limit. However the Robertson-Walker metric form for the universe implies complete absence of gravitational time dilation. Since we assume the universe was once arbitrarily compact, we turn instead to the metric for a static gravitational point source, but find that its textbook form puts a sufficiently compact universe inside an event horizon. This is due to transformation of the three radial functions which describe a static, spherically-symmetric metric into only two before inserting that now damaged metric form into the Einstein equation. Schwarzschild's original metric solution, which isn't in textbooks, involved no such transformation and therefore is physically sound; we obtain from it a picture of a universe which had an outburst of star and galaxy formation in the wake of its inflation.