Stressed at work--what are my options?

I have a job that I like but I am not one for playing games and wasting time at work. Unfortunately my boss doesn’t see things the same way. She feels if she is getting some work from the ‘slackers’ then that is all she cares about. I feel people should earn the paycheck they get handed twice a month. Am I wrong to be annoyed and stressed? I have always been, and will continue to be, a good worker who feels it is my job to deserve the paycheck I get and not look for ways to waste time. I have been at this job for 28 years and feel that the world is becoming one giant cesspool of useless people who just want to slide by and do as little as possible. Do you think I am over reacting to the situation?