So since any part of the universe could be considered "local" by it's inhabitants, none of the Universe is expanding?
More like: The Laws of Physics are valid anywhere in the Universe, and the only "point" with "zero expansion" is a single point. The space between any two points is increasing, and the rate of expansion increases as the distance between the two points increases. So the "Space" between the Earth and the sun is in fact expanding.
Or: You don't know shit.
The universe does not have many inhabitants, or matter, or anything else but space. So, yes for the inhabitants, their local space is not expanding, but it is the distance between these local spaces that is increasing.
To make your argument true, matter would also need to expand. Since the space just above earth would also be expanding, which would cause an increase in circumference just above earth, but the earth itself is not increasing (unless mater expands as well). Somewhere in there the expansion of space has to take into account matter, which what is considered 'local'. If I remember right, physicist consider 'local' to be the milky way galaxy, not just the solar system.
I also know shit, he is a good friend of mine.
Matter is, indeed, expanding. Or rather, the space between each teeny tiny particle is growing b/c each is moving away from the other.