Just curious what word would you use? Those without wealth or status have always been dehumanized regardless of the terms used for them.
As for right or wrong, pauper’s fields will always be a thing as long as there are poor and indigent people. Have you ever wondered what happens to the homeless when they die? Many end up unified in death. So there is no way to inform family if they ever have any.
I believe that it is much more common to cremate unclaimed deceased then bury them these days. Even still the ashes are not carefully interred, but just spread out on a common site.